Bitcoin Is Back Above $71,000. What Developments Are Worth Paying Attention To?

Source: Moomoo

Behind Bitcoin's back above $71,000, which developments should we keep an eye on?

Global crypto funds took a sharp downturn last week as investors pulled out $942 million - the most on record, according to CoinShares. This broke what had been a record seven-week string of inflows of $12.3 billion.

Last week's outflow came alongside downside volatility in the price of bitcoin, which tumbled below $61,000 from $73,000 just days earlier.

“We believe the recent price correction led to hesitancy from investors, leading to much lower inflows into new ETF issuers in the US, which saw $1.1 billion inflows, partially offsetting incumbent Grayscale’s significant $2 billion outflows last week,” James Butterfill, head of research at CoinShares, wrote in the report.

Source: Apollo

According to ZeroHedge, the latest week saw the largest Bitcoin CME non-commercial futures shorting/selling since last October.

In addition, Goldman's Futures desk observed record after record in bitcoin futures: indeed, as prices hit a record high above $73k, total open interest did as well this week above 33k contracts outstanding or nearly $12bn, as "the total number of organizations holding the contract is at a near-record also."

Moreover, Goldman noted that institutional net long and hedge fund net short lengths are at record levels, and the concentration of longs – the percentage of total open interest held by the top 4 net long traders at nearly 60% – is well above average levels.

Putting it all together, ZeroHedge predicted late on Sunday that "another epic squeeze was coming", and just a few hours later, the futures market experienced an "epic squeeze", where hedge fund shorts confirmed just how much they suck at holding their shots following a sharp move higher.

Nilam Resources, Inc. today announced that it has entered into a Letter of Intent (LOI) with Xyberdata Ltd to acquire 100% of the common stock of a special purpose entity, to be established under the name MindWave that will hold 24,800 Bitcoin. Nilam Resources, Inc., will issue a newly authorized Preferred Class of Series C Stock in in exchange for 24,800 Bitcoins at a discounted rate relative to current market prices.

If this acquisition goes through, Nilam Resources will become the second-largest Bitcoin holding company.

Source: ZeroHedge, Bloomberg, CoinShares