Institutions Open Record Bullish Positions for Bitcoin Despite Negative Events
Institutional Long Volume Increased During the Week Ending October 13 more than by 9% to 3,500 contracts. The last time at comparable levels, the indicator was in mid-September.
According to the analyst, sustainability bitcoin in the background the recent spate of negative developments could have instilled confidence in investors. Bitcoin continues to trade above $ 10,000 despite the hacking of the KuCoin cryptocurrency exchange and the persecution of BitMEX by the US authorities. On this week the OKEx exchange was added to them, withdrawal of funds with which it is still impossible.
“If these events took place in Last year, the bearish impact on the price of bitcoin would be much more tangible, “said Sui Chung, CEO of CF Benchmarks..
The derivatives market is now less dependent on exchanges like OKEx and BitMEX than a year ago. In September, the two exchanges accounted for over 70% of active positions in bitcoin derivatives. Chung believes that the observed phenomena may serve as a sign of the emergence of the cryptocurrency space.
In contrast, hedge funds and other types of leveraged players increased short positions by 4% to 14,100, in line with August levels.
However, the elder cryptocurrency trader Crypto Broker AG Patrick Heusser believes that this does not have to be a bearish signal. He admits that such positions may belong to traders who simultaneously buy an asset in the spot market and take a short position in the derivatives market if it is traded there with a significant overpayment. By the end of the month, the futures price approaches the spot price, which creates an opportunity for arbitrage.
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