In the last seven days, Bitcoin market has seen a growth of 7.1%. The latest macroeconomic developments, like the US interest rate cuts, suggest that the Bitcoin market is likely to grow further in the final quarter of the year.
Bitcoin Institutional Sentiment: An Overview
CryptoQuant CEO Ki Young Ju noted that institutional investors are no longer aggressively shorting Bitcoin. He shared the Bitcoin CME Futures Net Position in USD chart to support his observation. According to the data, net short positions on Bitcoin futures at the CME have dropped by at least 75% over the last five months. This is evidence of strong institutional sentiment towards Bitcoin.
What Does This Mean for Bitcoin?
It is well-known that the attitude of institutional investors towards an asset can positively influence it, as retail investors tend to follow institutional paths. As Bitcoin now enjoys the confidence of institutional investors, there is a high chance that those short-term investors who left the market during the recent period of uncertainty may return. This could serve as an additional boost for Bitcoin's future growth.
Conclusion
Given the strong backing from institutional investors, it can be said with some certainty that the Bitcoin market has a high chance of continuing its bullish trend in the near future. This positive shift in institutional sentiment supports the predictions of significant growth in Bitcoin's price.
Positive macroeconomic conditions and the reduction in net short positions by institutional investors create favorable conditions for further growth in the Bitcoin market.
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