Bitcoin short funds hit all-time high
All time high! That's good right?
...right?
Not so much (at least in the short term).
A new report from CoinShares shows that short Bitcoin investment products hit an all-time high of $172 million assets under management.
Investors ‘short’ Bitcoin when they think the price is about to go down, and right now a lot of people think that the price of Bitcoin is about to dip.
But here’s the thing: this makes perfect sense.
We’re in the middle of a crypto bear market, price drops are par for the course - and if there's an opportunity to make money off this volatility, no doubt some folks are going to take that bet.
So let's zoom out and re-centre our crypto chakras by asking:
Has anything fundamentally changed in Bitcoin's underlying technology?
Is this news likely to have a significant effect on BTC, five to ten years from now?
The answer to both questions, as far as we can tell, is ‘no.’
So we're filing this one under 'not a problem in the long term.'
(But you do you).
P.S. If you want to learn more about shorting crypto, and short squeezes, we covered everything you need to know a few months back, here (scroll down to article 3).
