Institutions take record high bets on Bitcoin futures (BTC), ignoring the Exchange’s missteps.
Recently, institutions raised their bullish bets on Bitcoin futures (BTC). Naturally, they’re listed on the Chicago Mercantile Exchange (CME), at the record level set last month.
As a result, the growing interest in CME futures indicates increasing institutional activity.
It is worth noting that some traders may have interpreted the agonizing 87 days it took to finally break the US$ 10,000 resistance. As a negative experience, considering it a bearish market.
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Bullish bets on Bitcoin futures
Indeed, in the week leading up to October 13. Institutional investors took the bullish bet count to a record 3,500 contracts reached in mid-September.
Under these circumstances, the numbers were published on Friday. Precisely, by the U.S. Commodity Futures Trading Commission (CFTC).
In particular, Bitcoin’s (BTC) recent resistance to various problems may have given the institutions the confidence to increase their bullish bets. This would be excellent news.
So, the crypto currency remained largely above $10,000 at the beginning of this month. Despite the news about the KuCoin hack. Also, for the filing of criminal and civil charges against BitMEX.
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In a sense, approximately $281 million of the funds were committed. By a security breach.
By the way, KuCoin, based in Singapore said in a statement that it detected large withdrawals of tokens from Bitcoin (BTC) and Ethereum (ETH) to an unknown wallet.
For its part, KuCoin is investigating the hacking with international law enforcement. Very importantly, the stolen money will be fully covered by an insurance fund.
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Charges against BitMEX
In these circumstances, the U.S. Commodity Futures Trading Commission (CFTC) and federal prosecutors. They are charging BitMEX with facilitating unregistered trading and other violations.
In this regard, the CFTC has accused BitMEX of executing futures transactions at an unregistered exchange and offering illegal options. In addition, of not registering as a trader for futures commissions and other charges.
In general, the official BitMEX Telegram group indicated that the platform was functioning normally. Basically, recommending users to contact their support page if they have further questions.
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OKEx suspends withdrawals
Similarly, buyers defended 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. Allegedly, because they were being held by the police.
That is why, Vishal Shah, founder of Alpha 5. suggested that the news could put OKEx’s trading venue in a bad position. But, that has little effect on Bitcoin’s reputation.
According to Patrick Heusser, a senior cryptomoney trader at Zurich-based Crypto Broker AG, „Cash trading may have driven Bitcoin’s downward bets to record highs.
Undoubtedly, Bitcoin has shown resistance to major negative news in recent weeks. As a result, institutions are taking upward bets on Bitcoin (BTC).
Even Sui Chung, CEO of CF Benchmarks, said, „If these events had occurred last year, the downward impact on Bitcoin’s price would have been much greater.
In conclusion, there is no single indicator that provides certainty about Bitcoin’s short-term price movements. The growing appetite of institutional investors points to an upward momentum. What do you think about this? Leave your opinion in the comment box.
I’ll say goodbye with this quote 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“.