Bitcoin Bears Blink as Short ETF Sees Heavy Outflows Amid Price Slump
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The T-Rex 2X Inverse Bitcoin Daily Target ETF, BTCZ, recorded significant outflows on January 2, 2026, with investors pulling approximately $967,679 from the fund. The move represents about 7.54% of its latest reported assets under management (AUM) of $12.83 million, signaling a notable shift in positioning among traders who had been betting against Bitcoin’s price.
The sizeable redemption suggests some bearish traders may be locking in profits or reducing leveraged downside exposure after a period of heightened volatility in the crypto market. Given BTCZ’s 2x inverse structure, its flows often reflect sentiment on short-term Bitcoin downside rather than long-term conviction, but a withdrawal of this magnitude is still a meaningful vote of reduced pessimism.
The related asset, BTC-USD, is currently trading around $92,677.01, having dropped roughly 26.36% over the past three months. Despite this steep correction, the 1-day technical outlook is neutral, with a Hold signal, indicating that near-term momentum is indecisive rather than clearly bullish or bearish.
Viewed together, the drawdown in Bitcoin’s price and the sizeable outflow from a leveraged inverse ETF hint at a market that may be attempting to find a floor: capitulation in short vehicles can sometimes precede stabilization in the underlying asset, though much will depend on macro liquidity, regulatory headlines, and risk appetite in the broader digital asset complex.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.