Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics

Although key Bitcoin (BTC), metrics aren’t showing a very good picture, it is possible that the bears may be on fumes. CoinShares and Arcane Research indicate that there is a possibility that Bitcoin will drop to $38,000, contrary to what some analysts have predicted.

Bitcoin institutional outflows totaled $55 mil in the five last weeks. Midweek, the total assets under management dropped to $35 billion, a three-month low.

CoinShares’ findings show that large Bitcoin investors, such as those who use companies like Grayscale, CoinsXBT and ProShares have been reducing exposure to the digital asset.

These actions are made worse by the fear and anxiety index, which has been hogging the “extreme terror” dial for the past two months. Meanwhile, Bitcoin spot buying volume fell to a six month low. The fear and greed index will enter a third consecutive month with extreme fear for the second time in the history of the metric.

Also, traders are trepidatious. Arcane Research reports that the average seven-day real BTC trading volume is $3.4 billion. This is the lowest figure since July 2021. It is also the result of the mini bear markets trough that took place from May 2021 to July 2021.

Investors and observers in the space will recall that the BTC price rose by more than 60% between August 2021 and October 2021 due to institutional investment.

Related: 43% of Bitcoin trading volume during US market hours: Arcane Research

The spring is in the coil, as Bitcoin’s 30-day volatility has been constrained to 2.5%, which is the lowest level for 12 months.

Analysts on Twitter are clamouring for upside action. @GalaxyBTC, a popular Bitcoin bull, tells his followers that $80,000 is imminent while @Tradermayne claims the “bottom” is in for the nth consecutive time.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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