Recently, institutions raised their bullish bets on Bitcoin (BTC) futures. Naturally, they are listed on the Chicago Mercantile Exchange (CME), at the record level set last month.
As a consequence, growing interest in CME futures indicates growing institutional activity.
Notably, some traders may have interpreted the agonizing 87 days it took to finally break through the $ 10,000 resistance. As a negative experience, considering it a bear market.
Bullish bets on Bitcoin futures
Indeed, in the week that ended on October 13. Institutional investors took the tally of bullish bets, to the record 3,500 contracts reached in mid-September.
In these circumstances, the numbers were published on Friday. Precisely, by the Commodity Futures Trading Commission (CFTC) of the United States.
In particular, the recent resistance of Bitcoin (BTC) to various problems, may have given institutions the confidence to increase their bullish bets. It would be excellent news.
So, the cryptocurrency remained largely above $ 10,000 earlier this month. Despite the news about the KuCoin hack. Also, for the filing of criminal and civil charges against BitMEX.
In a way, roughly $ 281 million of the funds were compromised. For a security breach.
By the way, KuCoin, based in Singapore. It said in a statement that it detected large withdrawals of Bitcoin (BTC) and Ethereum (ETH) tokens to an unknown wallet.
For its part, KuCoin is investigating the hack with international law enforcement. Very important, the stolen money will be fully covered by an insurance fund.
Charges against BitMEX
In these circumstances, the United States Commodity Futures Trading Commission (CFTC) and federal prosecutors. They are accusing BitMEX of facilitating unregistered trading and other violations.
In this regard, the CFTC accused BitMEX of executing futures transactions at an unregistered board and offering illegal options. Also, not to register as a trader for futures commissions and other fees.
In general, in the official BitMEX Telegram group, they indicated that the platform was working normally. Basically recommending users to contact their support page if they have any further questions.
OKEx suspends withdrawals
Similarly, buyers defended the support at $ 11,200 on Friday. After the prominent OKEx suspended withdrawals.
Specifically, the suspension was due to one of its private key holders being out of contact with the Exchange. Supposedly, because they were being held by the police.
That is why Vishal Shah, founder of Alpha 5. suggested that the news may put OKEx’s trading venue in a bad position. But, that has little effect on the reputation of Bitcoin.
According Patrick Heusser, a senior cryptocurrency trader at Zurich-based Crypto Broker AG, said: “Cash trading may have pushed Bitcoin’s bearish bets to all-time highs”.
Unquestionably, Bitcoin has shown resistance to bigger negative news in recent weeks. As a consequence, institutions are taking bullish bets on Bitcoin (BTC).
Even Sui Chung, CEO of CF Benchmarks, said: “If these events had happened last year, the bearish impact on the price of Bitcoin would have been much greater«.
To conclude, while there is no single indicator that provides security about short-term Bitcoin price movements. The growing appetite of institutional investors points to bullish momentum. What do you think about it? Leave us your opinion in the comment box.
I say goodbye with this phrase from John Dewey: “Luck, bad or good, is always with us. But, it has a way of favoring the smart and turning its back on the stupid”.