The crypto markets are booming once again; prices are up since the weekend and bitcoin is testing the $4,000 mark for the first time since January. The top cryptocurrencies remain green and fewer people are betting against bitcoin at this time—and literally so too.
According to data from Bitfinex, the value of funds in short positions against the premier cryptocurrency reached its lowest point in the last 6 months on Tuesday. When investors place short positions (or short bets) on an asset like bitcoin, they stand to profit when there is a drop in the price of the asset.
As at 13:00 UTC on Tuesday the value of funds held I these BTC shorts fell to 18,888 BTC, the lowest ever since August 4. 2018. The surprising bull run in the cryptocurrency market must have influenced investors to exit short positions they held against the BTC. The value of bitcoin shorts dropped by at about 30 percent since in the course of the day as bitcoin added about 10 percent in price.
More Confidence in the BTC market?
One way to interpret the sharp decline in short positions it as a renewed confidence in the crypto asset—that is to say market followers believe the coin is more likely to appreciate in price on the average than to depreciate.
Some analysts believe that BTC is making its way towards its first positive month since July 2018. If BTC ends the month above the 3,405 then it will the first time it will have posted the first gain after 5 consecutive months of monthly losses.
The market boost coincides with the news that JP Morgan, whose boss Jamie Damon is an avowed critic of bitcoin, announced that it will launch its native cryptocurrency the JPM coin. And Institutional interest has boosted BTC prices in the past.
Bullish Bets are Down Also
Long positions which are optimistic bets have also dropped considerably in at this time. According to an analysis of Bitfinex data on Coindesk, the value of long positions on BTC dropped about 30 percent since Tuesday. This put the ration of long to short positions at 1.42 to 1 which is lower than 1.54 to 1 which it was just before the weekend.