Bitcoin and cryptocurrency markets, in general, have been bearish during the first month of 2018 after many digital assets reached all-time price highs this past December. A lot of people have been following the correlation between the newly added bitcoin-based derivatives markets offered by Cboe and CME, alongside bitcoin spot prices over the past four weeks. Over the last few weeks, most of the bitcoin futures contracts have been bearish as traders forecasting the recent downtrend in value ‘shorted’ the market. However, according to recent data, bitcoin-futures bets are showing that a great majority of the contracts are betting ‘long’ on bitcoin’s price — predicting that BTC’s value will be rising shortly.
The introduction of the recent futures markets stemming from Cboe and CME had brought a lot of hype and overheated trading to cryptocurrency markets. Following the launches bitcoin’s market value spike to $19K per BTC but since the new year, the currency has seen a 40 percent loss in value. Since the bitcoin derivatives products began, the Commodity Futures Trading Commission (CFTC) has published reports on Cboe’s market performance. Since December the CFTC’s reports show that futures traders were betting against the price of BTC, indicating bearish sentiment and spot prices followed the contract predictions. This past Friday’s CFTC data tells a different story as the contracts are overwhelmingly bullish — meaning Cboe traders expect the price to rise.
This week’s CFTC report states that leveraged positions show 1,142 contracts are ‘long’ (betting the price will rise) while only 518 contracts are ‘short’ (betting the price will drop). The data is in stark contrast to the weeks prior when Cboe contracts bet way more ‘short’ as contract counts indicated shorts overwhelmed longs 4 to 1.