The recent happenings in the crypto market, especially the prolonged bear phase followed by the collapse of several big-shot forms this year have shaken the confidence of many investors. While many crypto enthusiasts have predicted the market to thrive through this phase, investors don’t seem to be convinced.
Recent data suggest that many institutional investors are speculating for the prices of Bitcoin and Ethereum to go down in the coming days. The report suggests the investors have registered deeply negative feelings in the last week as about 75% of the total inflows belonged to short product inflows making it the largest inflow on record.
Short products allow investors to short cryptocurrency (bet on assets’ price to decline) and data from last week suggests that investors majoritarian have betted on the prices of the two largest cryptocurrencies to go down.
A significant share of negative sentiments for the asset class can also be inferred from the declining trend noticed in assets under management in crypto investment products hitting its two-year low levels. As per data from last week maximum investors have put massive money into short-Ethereum investment products making a sum of $14 million.
Analysts suggest that the bets on declining prices are primarily due to the falling market triggered by the alleged collapse of FTX. Also, investors have cashed out approx $6 million in altcoins like Solana, Ripple, Polygon, etc. in the last week.
Earlier this month, JP Morgan also predicted the prices of Bitcoin to decline in the following weeks and predicted it to touch $15,000 levels as reported by Todayq News.
At the time of writing, Bitcoin is trading at $15,756.10, a 0.03% drop from the previous day and about a 5.54% drop over the past 5 days whereas Ethereum is trading at $1,085.44 a 1.85% drop from the previous day and about a 9.50% drop over the past 5 days.