Short Sellers Hit the Brakes: Big Outflow Slams Leveraged Bear Bitcoin ETF
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The T-Rex 2X Inverse Bitcoin Daily Target ETF, ticker BTCZ, saw investors yank $1,530,366 from the fund on January 7, 2026, a move that amounted to 15.53% of its latest reported assets under management of $9,854,064. The sizeable outflow from this 2x inverse product — designed to rise when Bitcoin prices fall — suggests traders may be reassessing the durability of the recent downturn in the world’s largest cryptocurrency.
The related asset, BTC-USD, is currently trading at $89,785.67, having shed 25.70% over the past three months. Despite that steep decline, the 1-day technical signal for Bitcoin sits at a cautious Hold, reflecting a market caught between bargain hunters and momentum-driven selling.
The sharp three-month slide in Bitcoin has, until now, been fertile ground for bearish and hedging strategies like BTCZ. However, such a large single-day redemption relative to the fund’s size may indicate that some speculative short-term bears are taking profits off the table or reducing risk amid rising uncertainty about the next leg for crypto prices. If Bitcoin stabilizes or stages a rebound, leveraged inverse products could see further pressure as traders rotate back into long exposure or move to the sidelines.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.