Wall Street bets 11 billion dollars on a Bitcoin crash

0

Last Updated on 29 April 2024 by CryptoTips.eu

Research agency Coinshares recently published its latest Digital Asset Manager report. This showed that the investment behavior of fund managers on Wall Street has changed significantly since the beginning of this year when it comes to crypto. Furthermore, a recent overview of where shorts and longs on Bitcoin are positioned also shows a change of heart.

We announced a difficult week last Monday. For tech stocks this turned out to be a mix of good and bad news, for Bitcoin a further consolidation between $60,000 and $65,000. The geopolitical circumstances have not really changed, but if the Israeli army really does enter Rafah (as Prime Minister Netanyahu seems to be planning), things could deteriorate quickly and the market will likely follow the mood.

Wall Street has changed its behavior lately. The latest Digital Asset Manager report from research agency Coinshares showed that there is less appetite for Ethereum while Solana is being purchased more and more often. Fund managers’ interest in Bitcoin has remained unchanged. Given Solana’s price decline over the past month (it fell to $130 after a temporary top of $200), this seems interesting should a new bull run begin in the next few weeks or months.

Advertentie.

Shorts

What I found even more interesting was a graph from Vivek, a popular crypto influencer. He showed how the Bitcoin market is currently positioned. As we told you, there is always a sell-off when Bitcoin makes a new top. This is because many investors bought Bitcoin when BlackRock announced an ETF last year and then set an automatic sell whenever Bitcoin hits a new record.

The market is currently in a different position. About 11 billion dollars (and given the size of these investments you know that these are Wall Street companies of course) in shorts were purchased when Bitcoin hit a new record of $73k in March. In other words, large investors are counting on Bitcoin to fall further and are only willing to sell their shorts at a lower level than now.

Of course, if a site like Wallstreetbets sees this graph, they could organize the largest short squeeze since Gamestop in 2021. Could become a very fun year.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
View all posts