CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$23,019.00
  • ethereum
    ETH$1,593.45
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » Bitcoin CME Shorts At All-Time High: Institutional Investors Know Something Or Short Squeeze Coming?

    Bitcoin CME Shorts At All-Time High: Institutional Investors Know Something Or Short Squeeze Coming?

    Author: George Georgiev

    Last Updated Aug 25, 2020 @ 20:34

    Institutional investors have opened a record number of short Bitcoin futures contracts on the Chicago Mercantile Exchange.

    Data from popular cryptocurrency monitoring firm reveals that institutional investors had a record-breaking number of leveraged short positions in Bitcoin futures contracts on the Chicago Mercantile Exchange (CME).

    While this might imply a lot of things, it appears that smart money is leaning toward bearish developments in the market. Of course, there’s always the possibility of a short squeeze.

    Institutional Bitcoin Shorts on the Rise

    Bitcoin’s price lost about $1,200 in the last seven days. Data from the popular cryptocurrency monitoring company Skew revealed that during the week ending on August 18th, institutional investors opened a record number of short contracts on the Chicago Mercantile Exchange (CME).

    CME_Charts_shorts
    Leveraged funds and net open interest on Bitcoin Futures at CME. Source: Skew

    To be precise, institutional investors held 1,400 short contracts last week.

    The company said that it might be a function of attractive cash and carry levels. This is a strategy used by arbitrage traders who seek to capitalize on the difference between the pricing of a derivative product and the underlying asset.

    ADVERTISEMENT

    A Possible Short Squeeze?

    It’s worth noting that a short squeeze might also be in the cards.

    This is a scenario when the number of shorts is comparatively higher than the number of long positions. In this case, the market is usually primed for the so-called short squeeze.

    This is an event where the price of an asset jumps high in a sharp manner, forcing traders who had bet that its price would decline, to buy it at a higher price to forestall greater losses. In turn, this particular scramble to buy adds more upwards pressure on the stock’s price and pushes it even higher. They are characterized by vicious green candles.

    However, the events of this week might not be favorable for a scenario of the kind. Bitcoin’s price has lost about $750 since August 18th, putting all those short positions well into profit.

    As CryptoPotato reported earlier today, the next critical level to keep in mind is the previous 2020 high that got breached last month – $10,500.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • JP Morgan: Bitcoin Could Rise 10x as it Competes With Gold for Institutional Investors
    • german_flag_bitcoin
      Short Bitcoin (SBTC) ETP Launched on Germany's Xetra Electronic Exchange
    • Fidelity
      Fidelity's Crypto Subsidiary Targets Asian Investors To Buy Bitcoin
    Tags: Bitcoin Bitcoin (BTC) Price
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    George Georgiev
    More posts by this author

    Georgi Georgiev is CryptoPotato's editor-in-chief and a seasoned writer with over four years of experience writing about blockchain and cryptocurrencies. Georgi's passion for Bitcoin and cryptocurrencies bloomed in late 2016 and he hasn't looked back since. Crypto’s technological and economic implications are what interest him most, and he has one eye turned to the market whenever he’s not sleeping. Contact George: LinkedIn

  • bitcoin
    BTC$23,019.00
  • ethereum
    ETH$1,593.45
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    13 Biggest Crypto Scandals and Controversial Stories of 2022

    13 Biggest Crypto Scandals and Controversial Stories of 2022

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!