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Hedge Fund Holdings Cannot Support Bitcoin Price

The price of Bitcoin is in danger of falling as investors are funding short positions in Bitcoin by borrowing digital money from exchanges. Datamish shows that investors are underfunding, causing the value of Bitcoin to plummet.

Bitcoin fell again on Friday despite an increase in capital inflows from major investors and portfolio institutions. Brevan Howard Asset Management LLP and Tudor Investment Corp have improved their bitcoin holdings by adding more cryptocurrencies to their portfolios.

Related Reading | Bitcoin outflows surge as 30k BTC leaves exchanges, stock plummets

Rising geopolitical tension and the escalating Russia-Ukraine crisis are negatively impacting investors’ risk appetite for both stocks and cryptocurrencies. This fueled a bearish narrative for the price of Bitcoin, which fell below $40,000 with no signs of falling.

Cryptocurrencies are not risk-free, and it seems that even big investors know this. As of March 11, 2022, Datamish research data showed that 1,500 Bitcoins were borrowed as short positions to fund these risks, a total debt close enough for a 3,603 BTC loan. After an increase in the financing of short positions, there were usually negative consequences, such as price declines.

Analysts have been monitoring the recent changes in the price of Bitcoin and predict that it will continue to fall. They believe there is still a significant risk of a future downturn, even after their recent rally.

The Bitcoin price rally is attributed to the first Ichimoku bearish breakout since Dec 4, 2021. Analysts believe that the Bitcoin price bottomed out in the $38,000 to $38,500 range. This is an important confirmation zone for bitcoin trading. This could signal more losses for investors who are selling assets in anticipation of an upcoming crash.

Bitcoin is trading at its lower limit | Source: BTC/USD Chat
According to Reuters, the Russians have flooded the United Arab Emirates with liquidation requests.

In a bid to drown in Russia to save their fortune, company executives and financial sources told Reuters that many Russians have flooded UAE crypto firms with liquidation orders.

That’s not all they want to do. Some of these investors are looking for real estate in the United Arab Emirates. While others plan to convert it to fiat currency and stash their money elsewhere, the sources said.

Related Reading | Bitcoin Exchange Withdrawals Suggest Whales Are Piling Up

The Swiss financial industry is currently in chaos. In fact, brokers have requested the withdrawal of billions of dollars worth of Bitcoin. The request came from his clients concerned that Switzerland might freeze all funds. A representative claims to have received orders of up to 2,000 million dollars.

The United Arab Emirates has been neutral ground for the Russians and Belarusians who have come to Dubai with their money to avoid being left out during any wars that might ensue. There have even been talks about people bringing crypto here because they know they will always be safe no matter which side wins.

According to sources in the United Arab Emirates, many Russians buy real estate with cryptocurrencies. They are using digital forms of money both ways – bringing their funds into Dubai and taking them out of other regions.

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