Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
As Prices Consolidate in Spot Markets, Asset Managers Increase Long Positions in Derivative Markets

As Prices Consolidate in Spot Markets, Asset Managers Increase Long Positions in Derivative Markets

CoindeskCoindesk2023/06/27 21:33
By:Coindesk

The Commitment of Traders Report indicates asset managers’ continued bullishness in bitcoin markets.

Bitcoin price action has begun to consolidate, following the 21% increase between June 15 and June 23. While investors appear to be pausing in spot markets, the Commitment of Traders (COT) report shows an increased appetite for long positions within derivative markets.

The COT report, published weekly by the Commodity Futures Trading Commission, details the open interest, and directional position of bitcoin futures traders across institutional categories of various sizes. The report is a proxy for sentiment, as traders disclose the extent to which they are long or short, bitcoin futures.

Long positions spike

The most recent COT report shows that asset managers increased their open long positions by 495 contracts last week. Leveraged funds by comparison, increased their long positions by 1,449 contracts, following a reduction of 538 contracts the week prior.

Asset managers with reportable positions are now 94.87% long bitcoin. This figure has been as high as 99% in prior COT reports. Leveraged funds with reportable positions are now 19.58% long and 80.42% short bitcoin.

The rise in long positions is an understandable reaction to recent market dynamics. The potential approval of a spot bitcoin ETF has given derivative markets the same type of boost that has occurred within spot markets.

The options open interest put/call ratio is 0.32, according to data analytics firm Coinglass. A put/call ratio below 1.0 implies a higher demand for buying than selling.

While not an ironclad sign of where prices are going next, the lack of bearish bets, following a 20% increase, indicates that investors are not looking to sell into the recent rally.

BTC’s chart shows three consecutive negative days prior to today's price action. Trading volume on the down days was below BTC’s 20-day moving average however, indicating that the momentum behind the decline was relatively weak. Some of the decline is a byproduct of decreased weekend trading, but the trend held on Monday as well.

Key levels to watch to the downside are $30,000, as well as $27,800. The $30,000 level marks a growing area of support, as well as a psychologically important level where buy and sell orders are likely to cluster. The $27,800 level coincides with BTC’s current 20-day moving average, which could be a target for traders expecting BTC to revert to its mean.

CoinDesk - Unknown

Edited by James Rubin.

3

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

VIPBitget VIP Weekly Research Insights

As the crypto market recovers in 2025, Digital Asset Treasury (DAT) firms and protocol token buybacks are drawing increasing attention. DAT refers to public companies accumulating crypto assets as part of their treasury. This model enhances shareholder returns through yield and price appreciation, while avoiding the direct risks of holding crypto. Similar to an ETF but more active, DAT structures can generate additional income via staking or lending, driving NAV growth. Protocol token buybacks, such as those seen with HYPE, LINK, and ENA, use protocol revenues to automatically repurchase and burn tokens. This reduces circulating supply and creates a deflationary effect. Key drivers for upside include institutional capital inflows and potential Fed rate cuts, which would stimulate risk assets. Combined with buyback mechanisms that reinforce value capture, these assets are well-positioned to lead in the next market rebound.

Bitget2025/09/12 06:52
Bitget VIP Weekly Research Insights