CME Bitcoin net shorts retreat 89% from peak as hedge funds close positions in force
According to CFTC positioning data, as of November 3, leveraged funds’ net short position in CME standard Bitcoin futures had fallen to around 12,955 BTC, equivalent to about 2,591 contracts. This is down approximately 89% from the peak of 115,985 BTC on December 17, 2024, and is the lowest level since February 2023.
The sharp decline in positions was mainly driven by the concentrated unwinding of basis trades: arbitrage funds that had entered earlier closed their positions as the spot-futures spread narrowed. This, combined with some shorts actively taking profits after prices fell, significantly eased the crowded short positioning. It is worth noting that institutional positions remain net short; the short trade is simply less crowded, which does not mean the market has turned bullish.
For the market, this means there is much less fuel for a futures short squeeze than at last year’s peak. But as long as net shorts have not been covered and turned into net longs, derivatives sentiment cannot yet be said to have shifted. Going forward, watch whether positioning continues to recover toward net long and whether the futures basis widens again.
#CME positioning #Bitcoin futures #short positions retreat $BTC
#对冲基金cme比特币净空头降89%
According to CFTC positioning data, as of November 3, leveraged funds’ net short position in CME standard Bitcoin futures had fallen to around 12,955 BTC, equivalent to about 2,591 contracts. This is down approximately 89% from the peak of 115,985 BTC on December 17, 2024, and is the lowest level since February 2023.
The sharp decline in positions was mainly driven by the concentrated unwinding of basis trades: arbitrage funds that had entered earlier closed their positions as the spot-futures spread narrowed. This, combined with some shorts actively taking profits after prices fell, significantly eased the crowded short positioning. It is worth noting that institutional positions remain net short; the short trade is simply less crowded, which does not mean the market has turned bullish.
For the market, this means there is much less fuel for a futures short squeeze than at last year’s peak. But as long as net shorts have not been covered and turned into net longs, derivatives sentiment cannot yet be said to have shifted. Going forward, watch whether positioning continues to recover toward net long and whether the futures basis widens again.
#CME positioning #Bitcoin futures #short positions retreat $BTC
#对冲基金cme比特币净空头降89%
