Inverse Bitcoin Traders Pull Back as BTCZ Sees Heavy Outflows
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The T-Rex 2X Inverse Bitcoin Daily Target ETF, BTCZ, recorded significant outflows on January 2, 2026, with investors withdrawing $967,679 from the fund. The move trimmed its assets under management to $12.83 million, meaning roughly 7.5% of the ETF’s capital base shifted out in a single session—a sizable vote of caution from traders betting against Bitcoin’s price.
The latest flows underscore how quickly sentiment can swing in leveraged inverse products, which are often used as short-term tactical tools rather than long-term holdings. A redemption of this magnitude suggests that a portion of bearish or hedged positions is being unwound, either as traders lock in profits from Bitcoin’s recent slide or reduce exposure amid rising uncertainty over the next leg in the crypto market.
The related asset, BTC-USD, is currently trading around $91,424.21. Despite its lofty price level, Bitcoin has dropped about 27.18% over the past three months, reflecting a sharp correction from recent highs. On a shorter horizon, its 1-day technical outlook is flashing a neutral tone, with a Hold signal, suggesting neither a clear bullish nor bearish edge in the immediate term.
For BTCZ, the combination of a three-month price drawdown in Bitcoin and today’s large outflow points to a market recalibrating its conviction: some traders appear less eager to maintain high-octane inverse exposure after a substantial downside move has already materialized. Whether this marks a pause in bearish positioning or the start of a broader rotation out of inverse crypto products will likely hinge on Bitcoin’s next directional break.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.