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Inverse Bitcoin Bets Unwind: BTCZ Hit by Heavy Outflows as Traders Reassess Crypto Downside

Inverse Bitcoin Bets Unwind: BTCZ Hit by Heavy Outflows as Traders Reassess Crypto Downside

Inverse Bitcoin ETF Sees Investors Head for the Exits as Volatility Bites

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The T-Rex 2X Inverse Bitcoin Daily Target ETF, ticker BTCZ, recorded significant outflows on January 21, 2026, with investors pulling an estimated $3,120,720 from the fund. The move represents roughly 23.7% of its latest reported assets under management, which now stand at about $13.15 million, underscoring how swiftly capital can pivot in highly leveraged, niche crypto strategies.

Such a sizable redemption relative to AUM suggests that traders who had been positioning for downside in Bitcoin—using BTCZ’s 2x inverse exposure—may be unwinding bearish bets or tightening risk after a turbulent stretch in the underlying asset. For a leveraged inverse product, a single day’s flows of this magnitude can meaningfully reshape positioning and amplify the sensitivity of remaining investors to further price swings.

The related asset, BTC-USD, is currently trading around $87,786.01, having fallen approximately 22.1% over the past three months. Despite that medium-term slide, the short-term technical backdrop remains fragile, with a 1-day signal flashing Sell. That combination—prolonged weakness and still-negative near-term momentum—may be prompting some investors to lock in gains on earlier inverse positions or step aside altogether amid lingering uncertainty over crypto’s next leg.

For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.

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