This Friday (27) marks the time of expiration of bitcoin futures contracts. In anticipation of this moment, Bitcoin tends to fall in price. However, Wall Street appears to be betting on a Bitcoin rally in the future.
As TrustNodes shows, Bitcoin has fallen to about $29,400 from just over $30,000, not a very significant drop after all.
While the drop is normal for Bitcoin’s current momentum, many expected a bigger drop.
“Bitcoin usually drops about 5% on Tuesday or Wednesday in the week when futures contracts expire. But this time things were a little different.” I wrote the TrustNodes.
One of the main reasons for the cryptocurrency to hold back in the middle of this moment is precisely very positive sentiment from Wall Street, especially in CME futures contracts.
The website points out that futures contracts on long positions on Bitcoin (rising bets) hit an all-time high, which could contribute to upward pressure on the cryptocurrency.
Bullish bets on bitcoin hit record high
Betting on long Bitcoin positions has reached its highest volume since Bitcoin futures contract trading in 2018. According to data released last week from the US Commodity Futures Trading Commission (CFTC).
The document reveals that 9,564 Bitcoin futures contracts are long and 8,758 are short. This brings the long contracts to 806, the highest value to date, with the last record being 703 contracts.
In easier-to-understand numbers, each contract is equivalent to about 5 bitcoins. That is, 4,030 bitcoins are in the “positive balance” of bets, roughly $120 million betting that Bitcoin will appreciate more than depreciate in the future.
Since the publication of this report, it is possible to see that despite there have been no major moves recently, Bitcoin remains in a sideways movement, between $29 and $30K. And for a “mini crypto winter” moment, this kind of sideways move is very welcome.
This indicates that Bitcoin has apparently found a bottom, which is critical to rallying in the coming months. With so much money believing in the cryptocurrency’s recovery, the bearish period may no longer have as much strength to continue in the coming months.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
