The investment flow on cryptocurrency platforms is one of the most common ways to analyze the behavior of bidders. On Twitter, the analytical publication CryptoQuant published information that indicates a significant increase in investment flow on crypto exchanges, which is considered a serious bearish sign.
On the other hand, the sudden surge in volumes is related to derivative assets (derivatives) and not the spot market. This means that selling pressure is not related to massive short positions. However, open interest is actively growing, indicating that investors are predominantly selling cryptocurrencies. The increase in the investment flow confirms the readiness of the bears to increase volumes, rather than fix their positions.
Over the past week, Bitcoin-Short investment derivatives have received $20 million in additional liquidity, against which the total volume of sales increased to $158 million.
This suggests that institutional holders are repeating the actions of retail traders and do not believe in the recovery of the crypto market in the near future.
On social media, many market participants noted that they are selling their assets in the hope of opening re-longs at lower prices. Most experts agreed: that this is an alarming trend that will put serious pressure on the flagship cryptocurrency in the near future.
