Bitcoin Futures Report Shows Bullish Sentiment Is In the Air

CFTC Report: Bitcoin Futures Contracts Are Overwhelmingly Bullish This week
The introduction of the recent futures markets stemming from Cboe and CME had brought a lot of hype and overheated trading to cryptocurrency markets. Following the launches bitcoin’s market value spiked to $19K per BTC but since the new year, the currency has seen a 40 percent loss in value. Since the bitcoin derivatives products began, the Commodity Futures Trading Commission (CFTC) has published reports on Cboe’s market performance. Since December the CFTC’s reports show that futures traders were betting against the price of BTC, indicating bearish sentiment and spot prices followed the contract predictions. This past Friday’s CFTC data tells a different story as the contracts are overwhelmingly bullish — meaning Cboe traders expect the price to rise.
I believe we are about to break out from an extended period of consolidation. I’m opening a medium-sized long position (saving some of my trading balance in case we do get a chance at ~$8k).
‘Shorters Prepare to be Routed’
The columnist Miko Matsumura from the Evercoin blog recently wrote how he believes individuals who short bitcoin markets should be prudent — especially those who don’t have ‘skin in the game.’ For instance, Matsumura says that most futures traders especially the ones trading Cboe and CME products are all just “speculators” who just see the price action. Most don’t understand that the limited downside to shorting is there’s a lot of believers and individuals who see a buying opportunity during price dips, Matsumura adds. “Where those who short bitcoin are weak because they don’t actually believe in the value of Bitcoin — This means that many of them think the value can “go to zero” — What they don’t see is an army of HODLers, and a mass of people who can’t wait to get into bitcoin at massively discounted prices,” explains Matsumura.Bitcoin investors, you’re safe. Speculators whether me-too newbies or futures trading people shorting bitcoin, prepare to be routed.

Images via Shutterstock, the CFTC, and Twitter.
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