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On a year-to-date basis, bitcoin (BTC-USD) has erased all of its losses since the collapse of FTX (FTT-USD) late last year, but some cryptocurrency-market investors don’t appear to trust the stability of the recent rally.
Indeed, inflows for investment products that allow investors to bet on lower bitcoin (BTC-USD) prices totaled $25.5M in the week ended Jan. 20, marking the largest weekly inflow since the $51M mark in July 2022, according to a recent CoinShares report.
Since the start of 2023, bitcoin (BTC-USD) has surged 37% to $22.83K and ethereum (ETH-USD) jumped 33.6% to $1.62K. The upswings coincide with the stock market’s (SP500) 4.8% run-up and the tech-heavy Nasdaq’s (COMP.IND) 8.7% climb, as market participants become more confident that inflation has passed its peak.
Overall, digital asset investment products last week saw inflows of $37M, 68% of which was into short investment products, the report noted. Trading activity was exceptionally high at $1.6B, topping the 90-day average, with bitcoin (BTC-USD) accounting for 80% of that total.
While investors grew more bearish on bitcoin (BTC-USD), altcoins such as ether (ETH-USD) ($4.2M), polkadot (DOT-USD) ($1.0M), cardano (ADA-USD) ($0.6M), ripple (XRP-USD) ($0.6M) and avalanche (AVAX-USD) ($0.5M).
Seeking Alpha contributor pointed out seven factors for bitcoin (BTC-USD) investors to watch out for in 2023.
