RATE Group | Bitcoin (BTC) Funds Are Placing More Shorts, Will This Fuel A New Rally?
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Bitcoin (BTC) Funds Are Placing More Shorts, Will This Fuel A New Rally?

23 Feb Bitcoin (BTC) Funds Are Placing More Shorts, Will This Fuel A New Rally?

Posted at 18:55h in Bitcoin News by

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Data from researchers at Skew shows funds have been increasing short exposure throughout the past several weeks as the bitcoin price surged past $9,000 to hit a yearly high at $10,500.

“Leveraged funds increasing short exposure week after week. Cash and carry strategies or outright shorts?” said Skew.

How this could add momentum to bitcoin entering March

Short-term movements in the cryptocurrency market are typically swayed by short and long contract liquidations.

During a short squeeze, sellers that expect the bitcoin price to go down begin to panic close or adjust their positions if the bitcoin price starts to go up.

While liquidations on platforms like Bitfinex and CME are significantly lower than exchanges like BitMEX and Binance Futures that offer up to 125x leverage, an abrupt bitcoin spike still causes short sellers to control their positions.

When that happens, as seen with short squeezes in the equities market like…

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