Understanding Bitcoin’s Downfall as Institutions Continue Purchase – Decoded

Key Points

• Hyperliquid whales have opened more short positions, indicating a potential major market decline.
• Institutional investors continue to buy Bitcoin despite the market downturn.

Bitcoin [BTC], after a 1.59% gain last week, lost almost 3% of its value in the last 24 hours.

AMBCrypto analysis suggests that this decline could continue as Hyperliquid whales dominate the derivatives market with a negative net BTC position.

Hyperliquid Whales and Market Decline

Coinglass reports a surge in derivative positions on Hyperliquid, a platform monitoring large traders’ positions, with figures climbing to $1.62 billion.

Short positions account for 54.15% of these open positions, worth $876 million, indicating a potential major market decline.

Data reveals that traders who placed long trades are at a loss, while short traders gained $125.75 million within this period.

This suggests that selling has been more profitable, which may have influenced Bitcoin’s recent decline.

Institutional Investors Continue to Buy

Despite the selling trend on Hyperliquid, institutional investors continue to purchase Bitcoin.

Netflows show that investors purchased a total of $165.7 million worth of BTC over the last 24 hours.

The Fund Market Premium, comparing Bitcoin prices on institutional investment platforms to the broader spot market, shows buying activity from these platforms.

This buying sentiment is in line with long-term holders’ decisions to accumulate, as evidenced by a Binary CDD (Coin Days Destroyed) reading of 0.285.

U.S investors, however, are selling, as reflected by the Coinbase premium dropping to -0.04.

This selling pressure from U.S investors could potentially lead to further Bitcoin decline.

A significant shift in either direction—bullish or bearish—will provide more clarity on Bitcoin’s trajectory in the coming weeks and months.