Markets are reminding investors that volatility has two sides in digital assets.
As Standard Chartered's crypto guru, Geoffrey Kendrick, begins his latest note, we’ve been used to (earlier in 2026) prices falling sharply.
Now we are starting to see (only starting) what happens when prices rise sharply.
So far this week, Kendrick notes that we have mostly seen liquidation of short positions, as chart (source: Coinglass).
In fact if I look at the full history on Coinglass, this is the largest liquidation of BTC shorts ever (data back to June 2021)...
The good thing is that for long term investors BTC is a Giffin good (people want to buy more when prices go up).
As a result, ETF inflows have begun too... A little bounce, and the crowd rushes in:
Bitcoin biggest ETF inflows since May...
Ether biggest ETF inflows since January...
But, if we zoom out on ETFs, Kendrick says this pick up is small/just getting started.
At roughly USD1.5bn in inflows so far this week, this is good.
History shows that at some stage we will get a daily inflow of more than USD1bn
