The Crypto Market Is quiet...too Quiet (Is This the Calm Before the Storm?)

TL;DR

• 'Digital asset investment products' (i.e cryptocurrencies) have seen $137M of in-flows over the past week ($742M over the past month).

• Trading volumes have surpassed the yearly average of $1.4B, reaching $2.3B over the past week.

• And while all of this has been happening, money has been flowing out of Bitcoin short positions (aka 'bets that BTC will fall in price').

• Despite all of this, crypto prices have stayed relatively flat (overall) for the past two weeks. Eerie ain't it? Feels like a storm is brewing.​

Full Story

You know that 'calm before the storm' feeling you get when you're about to get in trouble with your significant other?

You start noticing a string of pointed silences, one word answers, and a whole bunch of 'I'm fine's.

Yeah, well - we're getting a similar feeling with the crypto market...

Except it isn't spelling trouble! Quite the opposite.

Here's what's fueling it all:

• 'Digital asset investment products' (i.e cryptocurrencies) have seen $137M of in-flows over the past week ($742M over the past month).
  
  ☝️ That's the most substantial amount of new money entering the market since late 2021 (peak ​bull run​)!
  

• PLUS! Trading volumes have surpassed the yearly average of $1.4B, reaching $2.3B over the past week.
  
  ...why is that a good thing?
  
  Crypto is currently in an uptrend, and high or increasing volume in an uptrend often signals a buying opportunity.
  
  Which often leads to (you guessed it) more buying, and more buying often leads to increased prices.
  

• And finally - while all of this has been happening, money has been flowing out of Bitcoin short positions (aka 'bets that BTC will fall in price').
  
  For context: back in April traders were wagering a total of ~$198M that BTC would go down in price. Last week, that figure bottomed out at ~$55M.
  
  Moral of the story: the market is beginning to think it's a dumb idea to bet against BTC right now.

Ok, so if volumes are up, short positions are down, and we're seeing bull run levels of in-flows...then where's the price action?

We have no idea ¯\_(ツ)_/¯

Despite all of this, crypto prices have stayed relatively flat (overall) for the past two weeks.

Eerie ain't it?