Combing through CME bitcoin position data, we found that traditional players are starting to reduce their short positions

Thanks to the CFTC’s weekly position reports, we can get a glimpse of how CME bitcoin futures players are increasing or decreasing their positions, the percentage of each type of position, and the number of traders.

CME (Chicago Mercantile Exchange), which was founded in 1874. Currently, CME has become one of the largest financial derivatives trading platforms in the world.

Compared to other trading platforms that focus on cryptocurrency trading and crypto derivatives trading, CME is a compliant platform regulated by regulators. on December 18, 2017, CME officially launched bitcoin futures contracts, giving a channel for custodians and hedge funds to enter the crypto industry.

Of course, some investors believe that the introduction of bitcoin futures by the CME and CBOE (Chicago Board Options Exchange) indirectly contributed to the premature end of the bitcoin bull market, and Coinbase sentiment shows that just six days after the CBOE launched bitcoin futures and two days before the CME launched bitcoin futures, the price of bitcoin hit its highest point in years and did not break through that point until December 2020. and it was not until December 2020 that the bitcoin price broke through that point.

In terms of volume, the CME’s positions don’t seem to be able to influence the price of bitcoin. But the players on the CME are all major players in the capital markets, and their influence cannot be underestimated.

Because bitcoin futures on the CME are not traded 24 hours a day like the crypto industry, they are prone to gapping after weekends when the market is closed. Because of the influence of CME bitcoin futures, bitcoin quotes are often affected by gaps. Of course, historical data is of limited use in determining future quotes, and there is no way to tell the probability of the next gap fill that is created.

Combing through CME bitcoin position data, we found that traditional players are starting to reduce their short positions

Thanks to the weekly position reports disclosed by the CFTC, we can get a glimpse of the changes in the positions of CME bitcoin futures players, the percentage of each type of position, and the number of traders.

The CFTC classifies users of CME bitcoin futures contracts into “Dealers / Intermediary”, “Asset Manager / Institutional”, “Leveraged Funds”, and “Other reportables”. (Other reportables)” and “Nonreportable Positions”. Dealers/intermediaries generally refer to banks and brokers; custody/institutions generally refer to hedge funds and trading platform trading funds; leveraged funds generally refer to smaller-scale private equity funds; other reportables generally refer to large investors with larger capital; and non-reportable positions refer to retail investors with small capital.

The latest CFTC data shows that leveraged funds are the largest holders of CME bitcoin futures, holding about $448 million in long orders and $862 million in short orders (note: a position of $1.413 billion means there are $1.413 billion worth of short orders and $1.413 billion worth of short orders). 1.413 billion in short orders and $1.413 billion in long orders).

Changes in CME bitcoin positions over the last 4 months

To better gauge the relationship between CME bitcoin positions and the bitcoin market, Rhythmic BlockBeats has calculated the change in CME bitcoin positions over the last 4 months.

Combing through CME bitcoin position data, we found that traditional players are starting to reduce their short positions

With that data, we can draw two sets of conclusions that are highly correlated.

Leveraged Funds Are Reducing Short Bitcoin Positions

Based on the CFTC report date and the bitcoin UTC +0 time of the day, there is a strong correlation between the bitcoin market and leveraged fund short positions. Also, based on current data, leveraged funds are reducing their short BTC positions, which are currently at their lowest levels since March.

Combing through CME bitcoin position data, we found that traditional players are starting to reduce their short positions

Custodians and Institutions Are Increasing Long Bitcoin Positions

There is also a strong correlation between long bitcoin positions and the bitcoin market. The data from June 15 shows that long bitcoin positions are at the highest level since March.

Combing through CME bitcoin position data, we found that traditional players are starting to reduce their short positions

Rhythm BlockBeats reminds that according to the document “Risk Tips on Preventing Illegal Fund Raising in the Name of “Virtual Currency” “Blockchain” issued by the CBRC and other five departments in August 2018, the general public is invited to look at blockchain rationally, not to blindly believe in smallpox promises, to establish correct monetary concepts and investment ideas, and to effectively raise risk awareness; and to report to the relevant departments about any illegal or criminal clues found. If you find any illegal or criminal clues, you can actively report them to the relevant departments.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/combing-through-cme-bitcoin-position-data-we-found-that-traditional-players-are-starting-to-reduce-their-short-positions/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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