Bitcoin Is Back Above $71,000. What Developments Are Worth Paying Attention To?
Bitcoin retook $71,000 Monday for the first time in about 10 days, crypto-linked stocks including Coinbase and MicroStrategy also spiked Monday, gaining 9% and 22%, respectively.
Behind Bitcoin's back above $71,000, which developments should we keep an eye on?
Crypto funds mark biggest outflows on record last week
Global crypto funds took a sharp downturn last week as investors pulled out $942 million - the most on record, according to CoinShares. This broke what had been a record seven-week string of inflows of $12.3 billion.
Last week's outflow came alongside downside volatility in the price of bitcoin, which tumbled below $61,000 from $73,000 just days earlier.
“We believe the recent price correction led to hesitancy from investors, leading to much lower inflows into new ETF issuers in the US, which saw $1.1 billion inflows, partially offsetting incumbent Grayscale’s significant $2 billion outflows last week,” James Butterfill, head of research at CoinShares, wrote in the report.
Bitcoin erupts higher in epic futures short squeeze
According to ZeroHedge, the latest week saw the largest Bitcoin CME non-commercial futures shorting/selling since last October.
addition, Goldman's Futures desk observed record after record in bitcoin futures: indeed, as prices hit a record high above $73k, total open interest did as well this week above 33k contracts outstanding or nearly $12bn, as "the total number of organizations holding the contract is at a near-record also."
Moreover, Goldman noted that institutional net long and hedge fund net short lengths are at record levels, and the concentration of longs – the percentage of total open interest held by the top 4 net long traders at nearly 60% – is well above average levels.