Have you expected? Institutional investors' long positions increased by 88% before BTC surged

According to data from the US Commodity Futures Trading Commission (CFTC), institutional investors have already done a lot before April 2, and then the price rebound of Bitcoin has soared from $4,100 to more than $5,300.


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Smart investors do more bitcoin ahead of time

Data from the US CFTC show that the number of bitcoin long-term futures contracts opened by asset managers and institutional investors on the Chicago Mercantile Exchange (CME) between March 26 and April 2. Prior to April 2, 315 bitcoin long futures contracts were added to the CME platform. Compared with the previous week, the increase was as high as 88%. At the same time, short positions decreased by 63%, from 241 to 89.


CFTC Bitcoin Futures Position Weekly

Each CME Bitcoin futures contract represents 5 BTC and is settled in cash. This means that once the contract expires, the user will not receive the bitcoin delivered in kind but in US dollars.

Another point to note is that the total number of long and short positions opened by CME on the day was 404. Of these positions, 78% are long and only 22% are short positions.

This change in market sentiment may indicate that institutional investors are now turning to bullish bitcoin as investor interest continues to increase.

According to previous reports, the institutional trading volume of Bitcoin continued to grow for four consecutive months. So far, in April, most of the funds seem to be betting on the value of bitcoin. The increase in institutional trading volume mainly occurred in CME, especially after the Chicago Board Options Exchange (CBOE) announced the suspension of the provision of Bitcoin futures contracts in March.

At the same time, the BTC/USD deal pair (provisional $5,264) rose nearly 40% from the low price in mid-December.

Bullish is not just an institution

The rebound in bitcoin last week also seems to have changed the bearish sentiment of retail investors.

Data from TradingView shows that the number of long positions in the cryptocurrency exchange Bitfinex has also increased over the past five days.


Source: TradingView


Source: TradingView

The number of short positions has been significantly reduced. This shows that market sentiment turned bullish on April 8, which is also the time when the long position increased significantly.

At the same time, analysis by independent analyst Willy Woo suggests that a long-term bear market may be coming to an end.

The bullish sentiment was also echoed by senior trader Peter Brandt. He is known for predicting a high of $20,000 for Bitcoin and has successfully predicted that Bitcoin will fall more than 80% to less than $4,000. Brandt recently said that he would not be surprised if "BTC enters a new parabolic phase."