Bitcoin ETF Bulls Refuse to Retreat, Market Deleveraging May Face a Bigger Storm

ETFs Become a Fortress of Stubborn Bulls

Despite significant Bitcoin price declines wiping out Q2 2024 gains, ETF investors have maintained their positions. Matrixport analysis shows this 'persistent long bias' reflects traditional buy-and-hold strategies rather than tactical trading approaches.

Portfolio Imbalance Emerges

While other crypto sectors underwent aggressive deleveraging, ETF holdings remain massive and unhedged. This structural imbalance could amplify future volatility, particularly if institutional investors face forced rebalancing.

Deleveraging Storm May Be Delayed

• Rising ETF concentration risks
• Market correction could evolve into institutional rebalancing wave
• Current price levels struggle to support overextended positions

Market analysis suggests the iconic crypto deleveraging event might not have started yet, with larger institutional adjustments possibly still ahead.