Institutional Investors Still Don’t Believe in Bitcoin

  • The number of short positions on exchanges is increasing

  • Investors make money on the market fall

  • Some investors still believe in the growth in the value of military-technical cooperation

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Despite the fact that since the March crash, when the value of MTC fell to the minimum value of $ 3700, the coin has already won back more than 100% of the value. However, institutional investors still don’t believe in the success of cryptocurrency. A record number of shorts were opened in May, and the companies themselves hoped to profit from the market fall.

Investment has increased, but trust has not


According to the latest Trader Commitment report submitted by CME – a world famous derivatives exchange that hosts bitcoin trading contracts – the number of open short positions on BTC has increased significantly.

Institutional Investors Still Don't Believe in Bitcoin

That is, large institutional investors are confident that the cryptocurrency market will fall. According to a CryptoUnfolded source that monitored the activity of institutional investors, the number of short positions in the market increased from 650 BTC to 1,859 BTC. Institutional traders last increased their short positions to such values ​​in February, just weeks before the March crash.

It is worth noting that a significant increase in short positions was recorded after it became known that Goldman Sachs made a call to customers entitled “Implications of the current policy on inflation, gold and bitcoins.”.

In a statement, the financial services giant said that BTC does not generate cash flows like stocks, does not provide a proper hedge against inflationary risk, and does not “provide ongoing diversification benefits given their volatile correlations.”.

In other words, investors do not believe that Bitcoin will be able to strengthen in price in the near future and are betting on its further decline..

Bulls do not give up their positions


However, not all institutional investors are ready to go short in anticipation of an early Bitcoin crash.

As previously reported by CryptoSlate technology analyst Kevin Rook, between May 11-27, digital asset fund manager Grayscale Investments amassed 18,910 bitcoins on behalf of their clients, while miners mined 12,337 coins. This increases the capitalization of investors’ investments in MTC by more than $ 400 million in the first quarter of 2020.

Paul Tudor Jones, a hedge fund manager, is also convinced of the rise in the value of bitcoin.

Institutional Investors Still Don't Believe in Bitcoin

He himself has repeatedly stated that he wants to increase the amount of investment in bitcoin against the backdrop of the ongoing monetary policy of states, in particular the United States. After the additional issue of trillions of dollars, the American currency can no longer be considered scarce, so investors are betting on bitcoin.

Although studies show that dollar deficits are still observed in developing countries such as Nigeria or Venezuela.

Institutional Investors Still Don't Believe in Bitcoin

Residents of these countries, on the contrary, accumulate bitcoins in the hope of exchanging them for dollars..


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