Shorting became extremely popular among institutional investors
A bitcoin exchange-traded fund that lets investors B T c Short exposure reporting a massive 300% increase amid the turmoil in the cryptocurrency market continues to attract bears who will profit from the bleeding digital asset.
At press time, bitcoin has lost over 70% of its value from ATH, making it one of the working functions of a financial asset in both traditional and cryptocurrency markets. Such a strong drop in value following a series of Fed rate hikes is linked to a massive outflow from the industry that steers investors away from riskier assets like BTC.
The BITI ETF became the second largest bitcoin-related fund in the US after just four days of trading. The main reason behind the explosive growth is the state of the cryptocurrency market that we are witnessing today. As of now, BITI has 3,811 BTC under management.
making noise on something that is already down 70%
As we mentioned earlier, bitcoin has lost over 70% of its value since ATH returned in November, which makes the asset’s scarcity even more suspicious even though it was in a sharp uptrend. .
Back in the 2018 downtrend, bitcoin lost 83% of its value from ATH prior to a massive reversal, indicating that the current bear rally may be near the end and the asset may be entering a prolonged consolidation in the coming months. Or even a week.
Generally, traders avoid shorting because it is inherently riskier than shorting given the limited profit potential and unlimited loss potential for any type of asset. Any type of trader who would have shorted bitcoin in 2018 would face a catastrophic loss and liquidation.