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Short Positions On CME Bitcoin Futures Market Hit Record High

48 hours

Bitcoin is currently trading above $11,732 and is still struggling to break through the $12,000 mark. While many are optimistic about Bitcoin’s chances regardless, there are members of the community that are not very optimistic. In the week that ended on August 18, bearish activity for Bitcoin futures hit a new milestone on the Chicago Mercantile Exchange (CME).

According to a CoinDesk report, the Commitment of Traders (COT) released a report about leveraged funds. According to the report, the number of short positions by leveraged funds increased by 110% and hit a new milestone of 14,100 contracts. The report was published by the United States Commodity Futures Trading Commission (CFTC) last Friday.

The COT also said that corporate players held 1,400 short contracts in the previous week. This number has also swelled more than 100%.

According to crypto derivatives research firm, Skew, the number of shorts hit a new record because of “attractive cash and carry levels.” The cash and carry term describes a method of arbitrage where players hope to make gains from price differences between a derivative product and the underlying asset it is based on. Generally, players do this by purchasing the underlying asset on the spot market, watching for a significant trading price difference, and then taking advantage of this in the futures market.

Image Credits: Pixabay

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