Institutional investors are gradually reducing their short positions on Bitcoin, which can be seen as a positive signal for the market. According to data from CryptoQuant, short positions on Bitcoin Futures are declining, potentially indicating price support for this crypto asset.
Changes in Short Positions on CME Bitcoin Futures
Data shows that institutional traders are steadily reducing their short exposure to CME #BitcoinFutures contracts. For months, these investors held large short positions, contributing to the bearish market sentiment. However, the current trend of decreasing short positions may suggest a more optimistic future for Bitcoin.
Expectation of Bitcoin Price Growth
The reduction of short positions signals that institutional investors no longer anticipate further declines in Bitcoin's price. A drop in short positions is often associated with a less bearish market outlook and could suggest potential price gains in the near future. Bitcoin's price has been volatile lately, with experts attributing these changes to macroeconomic factors such as inflation and geopolitical uncertainty.
Whale Movement: Millions in Bitcoin Moved to Kraken
In addition to institutional activities, a significant transaction by a so-called Bitcoin whale has been reported. This whale, who held #bitcoin☀️ for more than ten years, moved a large amount of #BTC☀ to the Kraken exchange. According to Arkham Intel, this whale, who started mining Bitcoin in its early days, transferred over $4.21 million worth of Bitcoin in the past month.
The whale, currently holding approximately $73.4 million in Bitcoin, executed two large transactions. The first occurred about a month ago, transferring around 5 BTC, and the second, valued at $634,000, happened recently. Such large movements by long-term holders can influence market dynamics and prices.
Short-Term Holders Ease Selling Pressure
While institutions are adjusting their expectations, short-term holders (STH) remain active in the Bitcoin market. According to CryptoQuant, these investors tend to sell their assets at a loss when prices decline, contributing to sell-offs during bearish trends. However, the overall supply available to short-term investors is decreasing, which may reduce selling pressure.
As these "weak hands" are forced to sell, the pressure driving sales diminishes. A lower supply of STH may also set a price floor and provide an opportunity for long-term investors to enter the market. This reduction in selling pressure could create opportunities for accumulation and potentially signal a price bottom, laying the groundwork for future price growth.
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