Happycoin.club - Despite the fact that cryptanalysts are optimistic about Bitcoin (BTC), especially in view of its attempts to rise to the $70,000 mark, hedge funds expect a decline in the value of the main cryptocurrency.
On June 7, as the price of Bitcoin fell to $68,450 and then recovered to $69,300, financial news site Zerohedge reported “a big jump and a new all-time high in hedge fund net short positions in Bitcoin.”
CFTC Report. Source: Zerohedge
The significant increase in net short positions indicates a change in market sentiment, at least among hedge funds. This increase in short-selling activity suggests that hedge funds are betting on a decline in the price of BTC and are preparing to profit from it.
Sometimes, a bearish outlook from institutional players such as hedge funds can affect overall market sentiment and lead to increased volatility, putting downward pressure on prices.
However, a sudden jump in the price of BTC can wipe out short positions in a matter of minutes. In fact, that's exactly what happened on Friday. However, when BTC fell below $69,000, long positions, or longs, were liquidated.
