BTC Futures Data Shows Details About Latest Price Crash

The BTC futures data shows more details about the latest bitcoin price crash as the commodity futures trading commission released the latest Commitment of Traders reports for the Chicago Mercantile Exchange as we read in the previous bitcoin news.

The BTC futures data shows that the derivative products are aimed at institutional investors looking to get exposure in cryptocurrency. As per the weekly reports, the COT outlined which way the traders should be positioned on the market. The data provides some more insight into bitcoin’s crash below the $7,000 and according to the analysis from the digital asset advisory company BitODA, a large drop in the long positions will help to push the prices lower:

 ‘’From this data we are inferring the latest sell-off to be mostly weak longs getting  out of the market pushing the price lower NOT new shorts coming in. Because of this, we believe the sell-off shouldn’t be as long and as deep as previous bear markets.’’

It’s very important to remember that not all of the crypto features products are actually settled in the underlying product since the CME, settles all of its contracts in dollars and therefore bitcoin cannot actually change hands. The exchange explained:

‘’No. You do not need a digital wallet, because Bitcoin futures are financially-settled and therefore do not involve the exchange of bitcoin.
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’’

This only raises the question of the real impact that the futures have on the spot Bitcoin price and it also reignites a crypto flame that has stood the test of time. One of the CME’s major competitors Bakkt announced recently that it would be great to start providing custody but the products still raise some serious questions. The answer usually depends on the timeframe since shorting this market in the previous weeks would have netted you a healthy profit.

Given Bitcoin’s massive first half of 2019 Bull Run, and the danger alluded to earlier, the timing would need to be impeccable. One analyst even noted that bitcoin will reach up to $50,000 but only after a strong purge. Until the exchanges such as CME and Bakkt can deliver bitcoin settlements, the traders should stick to the spot market for more clues on price action.