A pessimistic outlook
Institutional investors have a pessimistic outlook on Bitcoin in the short to medium term. CME’s latest Commitment to Traders report suggests that institutional investors have increased the number of shorts in the past two weeks. CME hosts Bitcoin futures contracts on its platform. According to CryptoUnfolded, the overall position of institutional users of CME on Bitcoin has increased from -650 BTC to -1859 BTC. Such a massive surge in short positions was last seen in February of this year, just a few weeks before Bitcoin crashed and hit new lows.
CME bitcoin futures contracts an indicator?
Bitcoin futures contracts on CME have been instrumental in predicting the direction of Bitcoin price volatility in the past. Just a week before Bakkt’s institutional crypto solution was launched last year, the Commitment of Traders Report indicated that big investors were short on Bitcoin. As a result, they benefited when the crash occurred after launch.
Goldman Sachs phone call
It is noteworthy that the Wall Street giant Goldman Sachs recently made a phone call to its customers about the “Effects of Current Policies on Inflation, Gold and Bitcoin”. It stated that Bitcoin does not generate cash flow like stocks and cannot offer adequate protection against inflation risk. Because of the unstable correlations, there are no consistent advantages of diversification.