In the past five months, CME futures positions have shrunk by 75%, mostly due to the sharp decline in the premium of CME and Bitcoin futures. There is less room for arbitrage trading to make profits, and cheap Japanese yen liquidity has gradually withdrawn.
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This is why the inflow of funds into ETFs is not as good as before.
There is a lack of net inflows of arbitrage funds, and only on-site funds are playing games. The good news is that stablecoin funds have been increasing, and the market value has increased by US$10 billion since March 24.
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The current trading sentiment is optimistic, but can relying on on-site funds drive the price of the currency to rise? Of course not, on-site funds are limited, and long-term increases cannot be maintained without institutional or off-site funds. Now the sentiment is moving in a good direction, but the price of the currency seems to lack important signals to confirm.
