Data from the US Commodities and Futures Trading Commission show that institutional investors have set themselves up to play Bitcoin appreciation from April 2nd. The date coincides with the latest Bitcoin rally price when it took off from about $ 4,100 to more than $ 5,300 per minute.
Smart Money Goes Long on Bitcoin
US CFTC data show that the number of open long Bitcoin futures contracts by asset managers and institutional investors on the Chicago Mercantile Exchange (CME) increased from March 26 to April 2.
It is noteworthy that since April 2, 315 long bitcoin futures contracts have been opened on the CME platform. This is a whopping 88% increase over the previous week. Moreover, the number of short positions decreased by 63% – from 241 to 89 contracts.
Each Bitcoin CME futures contract represents 5 BTC, which is paid in cash. This means that after the expiration of the contract, the user will not receive physically delivered Bitcoin, but only US dollars.
It should also be noted that the total number of open long and short positions in CME on this date was 404. Of these, 78% were long, while only 22% were short.
This change in sentiment may indicate that US investors are currently bullish on Bitcoin, as interest grows.
Earlier it was reported that the institutional volume of trade Bitcoin continued to grow for 4 consecutive months. It seems that in April, most smart money is betting on the growth of Bitcoin. CME Group is primarily responsible for the increase, especially after the Chicago Stock Exchange (CBOE) announced in March that it would not offer any new Bitcoin futures contracts.
Meanwhile, BTC / USD of $ 5,119.40 -1.72% rose almost 40% from the price lows in mid-December.
Not only institutional
The latest Bitcoin rally seems to have changed bearish sentiment among retail traders.
The data from TradingView shows that the number of long positions on the Bitfinex cryptocurrency exchange has also increased over the past five days.
On the other hand, the number of short positions has significantly decreased. This suggests that the mood turned into a bullish side on April 8th, which also happened when long positions rose.
Meanwhile, independent analyst Willy Wu gave an analysis that suggests that the long bear market may come to an end. A rise above $ 5,000 marks the beginning of a new long-term uptrend.
A bullish attitude echoes the secondary trader Peter Brandt. He is known for calling the last Bitcoin parabolic breakthrough of $ 20,000, and also predicts a 80% decline to less than $ 4,000.
Brandt said recently that he would not be surprised if "BTC enters a new parabolic phase . "
Publication date 14/04/2019
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