Bitcoin to Touch $18K Amid ‘Minor Negative’ Market Sentiment?

• Coinshares believes there is only “minor negative sentiment” in the crypto markets.
• Inflows of $1.2 million into “Short Bitcoin” funds demonstrate the bearish trend.

Despite the threat of Bitcoin hitting $18,000 for the first time since mid-December, Coinshares analysis says that there is only “minor negative sentiment” in the crypto markets.

Bitcoin Price Chart (Source: CoinMarketCap)

Notably, Bitcoin outflows were just $6.5 million, which indicates that sentiment is “remaining negative.”.

According to Coinshares’ recent blog post, 

“Digital asset investment products saw outflows totaling US$9.7m, highlighting continued mild negative sentiment that has persisted for the last 3 weeks.”

Weekly Crypto Asset Flow by CoinShares

The below chart indicates the crypto funds’ consistent indicating persistence over the last six months, with just five weeks of inflows throughout the period. 

According to figures, outflows have failed to accumulate any substantial volume, as inflows and outflows canceled out.

Weekly Crypto Asset Flow (Source: CoinShares)

Inflows of $1.2 million into “Short Bitcoin” funds demonstrate the bearish trend within crypto. Coinshares described the trend as “continued mild negative sentiment that has persisted for the last three weeks.” 

Since its parent company Digital Currency Group was in turmoil over the past few weeks, Grayscale Bitcoin Trust has been closely watched by crypto investors.

However, GBTC jumped 12% on Jan. 10, lowering the discount by nearly 20% by 2023. There are currently $22.5 billion in crypto assets under management across funds, with Grayscale holding $14.9 billion.

While crypto’s impact on the world economy remains far from that of traditional assets, self-custody is one of its core tenants, and the move away from ETPs could become a more common trend as it grows.