Bitcoin (BTC) Price Falls Below $93,000 — Short Bitcoin ETFs See Best Inflows of the Year

Bitcoin on Friday hit a record-high of $99,768, marking a 47% increase from Nov. 4. But the world's largest cryptocurrency has slowly trended lower since

Bitcoin fell below $93,000 early Tuesday — pulling back after meeting resistance at the coveted $100,000 level. But short bitcoin ETFs saw their best inflows of the year Monday.

Bitcoin on Friday hit a record high of $99,768, marking a 47% increase from Nov. 4. But the world's largest cryptocurrency has slowly trended lower since, unable to clear $99,800.

BTC's price dropped sharply overnight as spot bitcoin ETFs registered $435.3 million in outflows, ending a streak of five consecutive days of gains, according to Farside Investors. BlackRock's iShares Bitcoin Trust (IBIT) was the exception, registering inflows of $267.8 million.

Short bitcoin ETFs, which bet on a price drop, saw record inflows Monday.

The ProShares UltraShort Bitcoin ETF (SBIT), which delivers 2x the inverse daily performance of bitcoin, recorded $18.8 million in inflows Monday, the largest since its April launch, according to Bloomberg. The ProShares Short Bitcoin ETF (BITI) recorded about $23 million over the past two trading sessions, which was among its highest inflows this year.

"Traders are hedging against potential downside risks," Nick Forster, founder of crypto trading platform Derive.xyz, told Bloomberg. "However, pullbacks like these are not uncommon in bull markets."

Bloomberg ETF analyst Eric Balchunas in a social media post Monday said that long-term holders are starting to sell, causing the price to dip. Balchunas cited data that showed long-term holders sold about 128,000 bitcoin starting in late October. But the U.S. spot bitcoin ETFs have absorbed 90% of that selling pressure, indicating there's still strong institutional support.

"The call is coming from inside the house, it's long term hodlers (sic)," Balchunas wrote, referencing the HODL nickname for investors adamant about not selling their crypto holdings.

Bitcoin Price, Crypto Stocks

Bitcoin traded around $92,650 Tuesday morning, rebounding slightly from its early low of $91,423. Despite the pullback over the past few days, BTC has still rocketed 120% in 2022.

IBIT and the spot bitcoin ETFs slid about 2% in early trade.

The ProShares Short Bitcoin ETF climbed about 3.1%, while the UltraShort Bitcoin ETF popped 4.6%.

Coinbase (COIN) stock fell about 1.2%.

BTC mining stocks also trended lower early Tuesday.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison

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