Bitcoin Bearish Sentiment Might End Soon

Javier Paz, Senior Analyst of Digital Assets at Forbes, said that most traders on the CME futures exchange might see the bearish sentiment of Bitcoin (BTC) coming to an end.


His argument is based on the latest data on the crypto futures market at the CME (Chicago Mercantile Exchange) specifically for the Asset Managers trader group on open interest data which is slightly bearish.

The spotlight on Asset Managers in Paz's analysis is not unwarranted. The reason is, of the 5 groups of traders, Asset Managers have the most exposure in Bitcoin futures contracts since early 2021.

Asset Managers are companies that are members of the CME that represent capital from institutional investors. “Asset Managers are the primary traders driving most other futures markets such as Euro futures and are able to entice Banks to trade the opposite of their trade in whichever market they operate. Therefore, it is reasonable to expect their participation to grow as the market matures,” said Paz.

As noted by the Editor of Blockchainmedia.id, to provide context, CME is the oldest and largest commodity derivatives exchange in the world.

Since October 2017, before the Bitcoin price started to plummet from around US$19,600 (mid December 2017), they were the first in the world to trade Bitcoin futures contracts.
The Position of Long Asset Managers is Increasing

At the beginning of his article in Forbes, Saturday (26/6/2021), Paz wrote that Asset Managers had 517 Bitcoin futures contracts with long positions as of June 15, 2021.

The number of contracts is up 35 percent compared to the previous, June 8, 2021 (382 units). 1 unit contract is equivalent to a value of 5 BTC or equivalent to IDR 2.2 billion as of June 26, 2021.

Asset Managers, one of the many groups of traders at CME, on April 13, 2021 when the BTC price peaked at US$64,800, has started to short and more and more until May 18, 2021 (1085 contracts).

 

Tag :

bitcoin news
why is bitcoin dropping now
why is bitcoin going down 2021
bitcoin crash
bitcoin news today
why is bitcoin going down today
why is bitcoin dropping right now
why did bitcoin drop today
Share:

No comments:

Post a Comment

Note: only a member of this blog may post a comment.

Hot Topic

CEO of Messari: "Bear Markets Are Good for Cleaning House."

 Although most of the crypto industry has had a difficult winter, Messari CEO Ryan Selkis believes that a little austerity will be good for ...

counter, at the bottom of the page, in a table, div or under a menu.