CryptoQuant data shows U.S. hedge funds have shifted to net long positions in Bitcoin futures, signaling growing bullish sentiment.
U.S. hedge funds have turned net long on Bitcoin futures traded on the Chicago Mercantile Exchange, reversing a year-long trend of short positions. The shift suggests institutional traders anticipate a rally in the cryptocurrency after months of declines, according to data analytics firm CryptoQuant.
Bitcoin has traded between $60,000 and $65,000 since late June, following a yearly low of $58,000. The cryptocurrency is currently priced at $64,800, roughly half its all-time high of $126,000 reached last October. Futures market activity indicates traders view the $58,000 level as a potential bottom.
Major hedge funds, including Citadel and Bridgewater Associates, had maintained bearish positions on crypto for much of the past year. The recent change in sentiment reflects a broader reassessment of Bitcoin’s short-term outlook among professional investors.