Bitcoin by Altcoin Buzz: Luc Lammers
According to the Commodities Futures Trading Commission (CFTC), April saw an 88% increase of long Bitcoin futures contracts. In total, 315 long Bitcoin futures contracts got opened.
According to information provided by the CFTC, 315 long Bitcoin futures contracts opened on the Chicago Mercantile Exchange (CME) in the first week of April. This means that the openend contracts have increased by 88%, signs that the sentiment in the cryptocurrency market is changing.
Besides the enormous increase in long Bitcoin futures contracts, the number of shorts positions dropped from 241 contracts to 89 contracts. A decline of 63% in just one week time. The data suggests that institutions are bullish in the long run, which is a complete trend reversal compared to what the market has seen in 2018.
At the end of 2018, Mark Dow, a well known Bitcoin shorter, already mentioned that he closed his short position. Dow told Bloomberg at that time:
“I’m done. I don’t want to try to ride this thing to zero. I don’t want to try to squeeze more out of the lemon. I don’t want to think about it. It seemed like the right time.”
Furthermore, several well known crypto analysts and investors have already mentioned in 2019 that the overall sentiment is changing and that they expect Bitcoin to see another bull run.
For instance, Spencer Bogart of cryptocurrency and blockchain venture firm Blockchain Capital, mentioned in an interview with Bloomberg Television in February:
“I think now is a very good time to buy Bitcoin. Is it the absolute bottom? Note sure.”
According to Spencer, Institutional money should start to flow in since entrepreneurial activity has not slowed down. The presence of institutional investors is so important that some analysts consider that this phenomenon could be the necessary catalyst to trigger the next bull run.