Bearish Bitcoin Futures Are on the Decline Reports CFTC

The latest Commitments of Traders (COT) report released by the U.S. Commodity Futures Trading Commission (CFTC) on August 24 revealed that bearish positions for non-commercial contracts of Bitcoin (BTC) futures are on the decline.

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The latest Commitments of Traders (COT) report released by the U.S. Commodity Futures Trading Commission (CFTC) on August 24 revealed that bearish positions for non-commercial contracts of Bitcoin (BTC) futures are on the decline.

This latest development has led to some market experts and analysts believing that Bitcoin price will soon embark on a bullish run.

BTC futures declined by 1,266

According to the report, the week which ended August 21 revealed that the overall position on BTC futures dropped by 1,266. Short positions meanwhile dropped by 210 contracts to 3,426 compared to the week before.

Long positions for that week was up by 56 contracts at 2,160.

The data above shows that the negative sentiments around the Bitcoin price are reducing while speculators are getting bullish on BTC price.

The overall tally indicates that the market is still overall net short. However, a drop by 1,266 is a very sharp drop from the 1,926 recorded on June 5th.

The strong performance and of the Bitcoin price over the past few weeks is shifting investors sentiment away from bearish.

Brian Kelly last week quoted some statistics from CME exchange which suggested that the Bitcoin futures market overall is seeing an increase in demand while experiencing greater maturity at the same time.

He pointed out that starting from April, CME Futures open interest of large holders started to increase, with roughly 85 percent growth rate. He expects the market to be very robust by February next year if the growth continues at the current pace.

Kelly also believes that the U.S SEC will most likely approve a Bitcoin exchange-traded fund (ETF) by February 2019. He predicted this based on the current growth in the Bitcoin derivatives market, alongside other factors.

Kelly pointed out that the cryptocurrency market has grown resilient due to the fact that the fresh wave of ETF disapproval orders has not lead the market to sell off.

Bitcoin (BTC) is trading around $6,917 at press time and is up nearly 3 percent on the day.

Weekly chart

Bitcoin’s weekly chart shows that the cryptocurrency has been on a steady climb over the past seven days. It was trading at $6,430 a week ago with highs above the $6,700 mark experienced twice during the week.

Bearish Bitcoin Futures Are on the Decline Reports CFTC

It also dropped below the $6,400 mark during the week but its recovery has led to it now trading close to the $7,000 mark.

Crypto market stabilizes despite Bitcoin ETF rejection

As Brian Kelly pointed out, the cryptocurrency market has stabilized and continues to grow steadily despite the Bitcoin ETF rejection a week ago.

Most cryptocurrencies are currently trading in the green, and the stability of the market is an indication that it is getting ready for a bullish run.

The entry of large companies like the New York Stock Exchange, Microsoft, Starbucks, Bank of America and many others has led the crypto community to believe that institutional investors will help drive the next Bull Run.

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