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Bitcoin Smart Money Sentiment 6/17/20 – The Smart Money Is Definitively More Bullish

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rollandthomas
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The Commitments of Traders (COT) is a weekly market report issued by the Commodity Futures Trading Commission (CFTC) listing the positions held by commercial traders and the “Smart Money”, the hedge funds and bank institutions in various futures markets in the United States. Since the COT measures the net long and short positions held by speculative traders and commercial traders, it is a great resource to gauge sentiment in the Markets.

CME has broken its previous records with its increasingly popular Bitcoin futures options. Interest in this fast-growing derivative show that the institutional appetite for BTC is growing.

The Chicago Mercantile Exchange, or CME, has seen the volume of its Bitcoin futures options grow from 91 BTC ($860,000) to 2,400 BTC ($23 million). That amount represents a 25-fold increase in just two months.

There are a few different explanations as to why the demand for CME Bitcoin options has grown so rapidly over the past two months. One factor in CME’s popularity is the fact that few mainstream markets offer similar services. Though CME accounts for a fairly small share of the overall Bitcoin futures market, it seems to appeal to institutional investors due to the fact that it is a traditional market and not a decentralized finance platform.

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I have been following the Smart Money in Bitcoin ever since the CME launched a cash settled Bitcoin futures in December of 2017. In February 0pen interest at the derivatives exchange stands at $338 million and daily volume stands at $475 million. What I'm seeing June is open interest has increased 33% from February.

And this is what I like to see even more, as open interest has increased, meaning the Smart Money is opening positions, Bitcoin price continues to climb. This translate to the Smart Money is getting long Bitcoin.

And based on my Smart Money Bitcoin Sentiment chart, the Smart Money is becoming more bullish on Bitcoin.

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

Posted Using LeoFinance