BTC Futures: Bear Population in Decline

BTC Futures: Bear Population in Decline

Short positions for Bitcoin (BTC) futures are on the decline, according to the latest report by the U.S. Commodity Futures Trading Commission (CFTC)

On August 24, CFTC published a Commitment of Traders report for the week ending on August 21. The report shows that the net position for non-commercial contracts of BTC futures totaled to -1266, the all-time low recorded by CFTC. This means that, while the market is still short, there are only 1266 more short positions, which is the smallest difference there has ever been. This data implies that the end of the bear market can be just around the corner.

Commitments of Traders — Futures Only, August 21, 2018

Here’s CME Futures open interest of large holders. [As of] April, you’re starting to see a big increase… about an 85 percent growth rate. If you extrapolate that out, by February 2019, you’re going to have a very robust market here

Brian Kelly, crypto analyst at CNBC

Quick reference on BTC futures

A BTC futures contract is an agreement where Party A agrees to buy a specified number of BTCs from Party B on a specified future date at a specified price. However, BTC futures contracts do not specify parties, which means they can be easily traded. BTC futures were first introduced by CME and CBOE exchanges in January '17.

The launch of BTC futures is blamed by some to have caused the January plunge. They believe that BTC futures compromise market integrity by opening possibilities for market manipulation. The opposing view adduces arguments such as that there is not enough open interest; the trading volume is not sufficient; and margin requirements are too high to offer enough leverage to incentivize market manipulation.

Related news

Bakkt’s Bitcoin Options, Cash-Settled Futures Contracts are now Live

Bakkt, the Bitcoin (BTC) trading platform geared toward institutional investors on December 9, 2019, announced that it had launched two new digital currency products – Bakkt Bitcoin Monthly Options, and Bakkt Bitcoin (USD) Cash Settled Futures. Expanding the Crypto Product Catalogue Intercontinental Exchange’s (ICE) Bakkt said on December 9 that it will be using itsRead MoreRead More. The post by Aisshwarya 2 appeared first on BTCManager, Bitcoin, Blockchain & Cryptocurrency News\
BTC Manager

Open Interest on CME Bitcoin Futures Drops to 6 Months Low But Bakkt’s Flying

Bitcoin is currently trading at $7,448 on spot exchanges as per Coincodex while managing the daily trading volume of $269 million on ten exchanges with real volume, up from $140 million earlier in the day and $120 from the weekend. Unlike the low volume on spot exchanges, Bitcoin futures have been recording more than a […]
Bitcoin Exchange Guide

CME BTC futures' low open interest could mean fewer price fluctuations

2019 is coming to an end but people in the Bitcoin community are still holding their breath, as the volatility has been off-the-charts lately for the largest digital asset. Since the start of NovemThe post CME BTC futures' low open interest could mean fewer price fluctuations appeared first on AMBCrypto.

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.