Has Bitcoin Price Bottomed? Institutional Traders Seem to Think So

CME traders are turning more bullish on Bitcoin as hedge funds reduce shorts and ETF inflows recover. Is the $58,000 bottom already in?

Bitcoin’s biggest institutional traders are becoming less bearish.

Large reportable traders on CME are now modestly net long in Bitcoin (

)

, according to the latest Commodity Futures Trading Commission data.

Within that group, leveraged funds—a category dominated by hedge funds and other money managers—have also sharply reduced the net short position held earlier this year. The shift is notable because hedge funds have historically maintained large net shorts on CME as part of widely used basis-trade strategies.

Net reportable CME Bitcoin futures positions have flipped long. Source: CryptoQuant

At the same time, spot

inflows have returned, and large holders have resumed accumulating following Bitcoin’s drop toward $58,000 in late June.

Taken together, analysts say the shifts suggest institutions may be positioning around a potential Bitcoin bottom.

“Our view remains that the cycle lows are probably now behind us,” CoinShares Head of Research James Butterfill

in an Aug. 7 market update.

Large Bitcoin Traders Turn Net Long

CFTC

for Aug. 4 shows large reportable traders holding a combined net-long position of roughly 1,900 BTC across standard and Micro Bitcoin futures.