Bitcoin, Cryptocurrency

Institutions’ Bitcoin Future Have Never Been Short Than Now

August 24, 2020

Over recent weeks and months, Bitcoin has been surging higher. It has done so well that it is the best-performing macro asset of the year, including Ethereum.

This year, BTC’s rally has caught the attention of many on Wall Street. The billionaire hedge fund manager, Paul Tudor Jones, went public with his stake in the cryptocurrency this year. The others have followed suit.

But, much of Wall Street is currently short according to data where most institutional traders transact Bitcoin. This could substantially harm BTC’s price action, especially as institutional shorts have preceded historic drops.

 “Smart Money” Is Record Short Bitcoin Futures: CME Data

According to data shared by crypto data tracker, institutional traders using it have cumulatively opened they’re most extensive short on Bitcoin futures ever.

Traders on the discussion recognized as “institutional traders” presently have -3,119 BTC contracts open. This is an all-time low for this metric, but this isn’t entirely astonishing as there are more traders than ever using the discussion due to an uptrend in overall Wall Street interest in Bitcoin.

This is relevant to recent price action as the last time institutional dealers had opened a massive Bitcoin short position, the price began its weakening.

Chart of BTC’s price action since the start of 2018 with CME futures positioning from crypto data site/news aggregator “Unfolded” (@CryptoUnfolded on Twitter). Chart from

Importantly, retail traders using the CME have increased their exposure to Bitcoin massively.

Wall Street: Not Everyone Is Bearish on BTC

Not everyone on Wall Street or related to Wall Street is bearish on Bitcoin, though. As aforementioned, Paul Tudor Jones, a legendary macro investor, is bullish on Bitcoin.

There are also personalities like Raoul Pal, the former head of Goldman Sachs’ European hedge fund sales division, which is positive about the asset. Pal wrote just the other week that he thinks Bitcoin is the best trade in existence:

“Only one asset has offset the growth of the G4 balance sheet. It’s not stocked, not bonds, not commodities, not credit, not precious metals, not miners. Only one asset massively outperformed over almost any time horizon: Yup, Bitcoin… These are all INCREDIBLY BULLISH long-term chart patterns. The probabilities in the charts suggest that Bitcoin is likely to be the best performing major asset in the world over the next 24 months and by a big margin.”

Pal thinks Bitcoin could hit $100,000 in the years ahead.

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