TL;DR: “Four or less traders hold almost 70% of all btc short futures positions,” Silver Watchdog claimed. Based upon the so-called Commitment of Traders (COT) data, it offers stark contrast to the current price runup of bitcoin core (BTC), and might mean trouble ahead.

Four or Less Hold Almost 70% of BTC Short Futures Positions



At the time of publication, the world’s most well-known cryptocurrency, BTC, was trading at just a hair under $11,000, after breaching that level briefly. Critics charge the rally is precious little more than fear of mission out combined with a variation on the greater fool theory. BTC’s mempool is already beginning to be taxed, and transaction fees are rising in response. Considering the wide array of alternatives, what is the coin actually trading on if not its first-mover, network effect advantage? some experts have asked.

Still other critics warn of a Tether (USDT) printing glut. Another sizeable driver for speculative markets has been BTC futures. With so few holding a near super-majority of short positions, “Not only are they accumulating shorts but reducing long exposure as well. This is positioning for a price drop,” Silver Watchdog stressed.

Fridays are watched by futures traders especially, as the Commodity Futures Trading Commission (CFTC) releases a published report on aggregate holdings. It’s a snapshot as of Tuesday that week, in hopes of providing investors with transparency against whom they’re essentially betting. It’s also considered a valuable market signal among the trading community.

Silver Watchdog is a rabid critic of cryptocurrency exchanges such as Bitfinex, which is known for its ties to USDT (so much so it’s embroiled in a nasty lawsuit at the hands of the New York Attorney General). “What the crypto market needs are some players like Jim Chanos or Muddy Waters to exposure the frauds,” Silver Watchdog explained. “Right now are hardly any fraud detectors other than a few anon tweeters. Taking down Bitfinex with several exchanges would be a huge profitable play if it could be done.”

DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH.

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