‘Smart money’ is very optimistic about Bitcoin

If Taiwan-based MacroMicro is to be believed, smart money is currently extremely bullish on Bitcoin. The so-called Smart money index MacroMicro tracks the spread between the long and short positions of the market’s wealthiest investors on the Chicago Mercantile Exchange.

Therefore, there are many more long positions open at the moment, which means that large investors are extremely bullish on Bitcoin.

Smart Money Index Breaks New Record for Bitcoin

The Smart Money Index rose to 13,711 points last week, breaking the previous record of 13,603. According to MacroMicro, this indicates a very optimistic mood among major investors ahead of the possible approval of the Spot Bitcoin ETF in January 2024.

CME futures contracts starting at 5 Bitcoin are often seen as a reflection of institutional activity in the market.

This exchange platform allows market participants to take positions in Bitcoin without actually having to purchase Bitcoin.

Futures are derivative contracts that obligate buyers to buy an asset and sellers to sell an asset at a predetermined price on a specific date in the future. A long position means that you MUST buy the asset at the pre-agreed price at some point in the future.

Waiting for January 10th

All eyes in the market are currently focused on the US Securities and Exchange Commission (SEC). According to many experts, they should have the final say on the possible approval of spot Bitcoin ETFs before January 10, 2024.

Of course this is the first step.

After that, we just have to see if these ETFs can deliver on what they promise and if we will actually see a huge flow of capital into Bitcoin when they launch.

Optimistic expectations caused the price of Bitcoin to rise by almost 60% last quarter. Bitcoin also got off to a good start today with a 2.83% gain, bringing the price to $43,500.

Source: BtcDirect

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