Hedge Funds Widely Flip Short on Bitcoin Despite Blatant Breakout


Hedge Funds Widely Flip Short on Bitcoin Despite Blatant Breakout

  • Bitcoin has been caught within the throes of an intense uptrend throughout the past few weeks
  • This has led its price to post massive gains, with bulls now vying to post a monthly close above $13,800 for the first time
  • Although this would mark the highest monthly close ever seen by BTC – which would be undeniably bullish – not everyone is convinced
  • Data from the latest Commitment of Traders report from the CME shows that hedge funds have more open short positions on Bitcoin than ever before
  • This comes as institutions, retail investors, and professional traders are flip net-long

Bitcoin has seen some of the most bullish and exciting price action ever, with intense fundamental strength, mounting adoption rates, and a powerful technical structure all working in its favor.

It is now in the process of flipping $13,800 into support, as this was previously a strong resistance level.

It did rally as high as $14,100 overnight, but this was met with some serious selling pressure that sparked a sudden pullback.

Despite this recent movement’s overt strength, there is one group of investors that is shorter on Bitcoin than ever before – hedge funds.

This is revealed in the CME’s latest Commitment of Traders report.

Bitcoin Sees Powerful Uptrend as It Continues Shattering Key Resistance Levels

At the time of writing, Bitcoin is trading up over 2% at its current price of $13,880. This marks a slight decline from its overnight highs of $14,100.

The crypto’s uptrend is showing no signs of slowing down anytime soon, as each selloff has done little to slow the cryptocurrency’s mid-term trend.

If it can end the day above its current price level, it will mark the highest monthly close ever seen by the cryptocurrency in its decade-long history.

CME Report Shows Hedge Fund Net-Short Positions on BTC Hit an ATH

Per the latest Commitment of Traders report put forth by data aggregated Unfolded, while institutions, professional traders, and retail traders are all net-long on Bitcoin, hedge funds have never had this much short exposure.

“27 – October CME BTC Commitments of Traders (COT) report – Open Interest: 12,665 (up +16.2%) – Hedge funds net short new all-time-high – Open interest nearing all time highs.”


Image Courtesy of Unfolded. Chart via TradingView.

These short positions could act as rocket fuel for a move higher, making them a vital piece of the next leg higher.

Featured image from Unsplash.
Charts from TradingView.

BitMEX Chiefs Looted More Than $440M From Exchange After Finding Out About Probes, Suit Alleges

The top officers of HDR, the parent company of crypto trading platform BitMEX, which has been charged with facilitating unregistered trading and other violations, systematically looted $440,308,400 from HDR accounts, a civil lawsuit claims. HDR denied the original charges at the time they were brought.

UPDATE: 21:55 UTC. Adds HDR’s denial of the initial charges.
Read also: BitMEX Exchange Hires First Compliance Chief After US Charges

Yearn.finance (YFI) Open Interest Hits an All-Time High as Selloff Continues

Yearn.finance’s YFI token failed to gain any momentum following yesterday’s sharp rebound following a brief dip below $10,000.

The cryptocurrency is now on the cusp of once again breaking below this level, with the immense selling pressure coming about as open interest for the token reaches an all-time high.

Although the sell-side of YFI’s order books are rather thin at the moment, a lack of any intense inflows of capital has perpetuated its recent technical weakness – which is showing few signs of slowing down any time soon.

The governance token’s price is also dipping in tandem with the implementation of a new proposal to redirect the ecosystem’s income towards YFI token buybacks, which is widely expected to boost its price.

Investors don’t seem to care too much, however, as the selling pressure placed on the token has been relentless.

Unless it traps short positions and sees a more sustainable rally in the near-term, there’s a decent chance that significantly further downside is imminent.

Yearn.finance (YFI) Struggles to Gain Momentum as Descent Continues

At the time of writing, Yearn.finance’s governance token is trading down over 6% at its current price of $10,370.

Yesterday, the crypto rallied to highs of $12,000 following a dip to lows of $9,600 set just a few days ago.

This decline marked capitulation, and the subsequent rebound made many analysts suspect that this was a short squeeze that could help mark these lows as a long-term bottom.

However, the decline seen throughout the past day signals that this selloff is not over and that further downside may be seen in the days and weeks ahead.

YFI Open Interest Hits All-Time Highs as Traders Bet on Volatility

Open interest for Yearn.finance’s YFI token is now at an all-time high, which indicates that an explosive move could be right around the corner.

Prominent investor Andrew Kang spoke about this in a recent tweet, explaining that OI is surging following the move towards $15,000 that cleared the upside liquidity.

“OI on YFI at new ATHs, surpassing first capitulation at 12k earlier this month. 12k-15k liquidity capitulated into high volume at 10ks (same as first capitulation into 12ks. Sell side orderbooks thin. What happens to shorts on a bounce up?”

Yearn.finance YFI

Image Courtesy of Andrew Kang. Source: BTCUSD on TradingView.

Although he seems to believe that this indicates a move higher is imminent, the lack of any short squeeze during yesterday’s relief rally seems to point to immense underlying weakness amongst bulls.

Featured image from Unsplash.
Charts from TradingView.

John McAfee Pumps Crypto From Prison, Denies Tax Fraud and Murder Charges

John McAfee Pumps Crypto From Prison, Denies Tax Fraud and Murder Charges

John McAfee has shared many details about his life in Spanish prison and chances of extradition to the U.S. He additionally claims to have regained control of his ghost cryptocurrency project.

Prison Life ‘Is an Adventure’

Former U.S. presidential candidate and antivirus software tycoon John McAfee is in Spanish prison awaiting his extradition trial after he was arrested in Spain.

McAfee has been tweeting regularly from prison. “You want to know what prison is like. It’s like a Motel 6 run by Hitler’s SS,” he tweeted, elaborating:

I am content in here. I have friends. The food is good. All is well. Know that if I hang myself, a la Epstein, it will be no fault of mine … Prison is an adventure to say the least.

“Spanish prisons are like the Hilton hotel compared to the abject surreality and dehumanization of American prisons,” he described in another tweet. “In Spanish prisons, you are treated as a human being instead of a number. I am treated well.” Admitting that he is “surrounded by murderers, muggers, and thieves,” the antivirus software tycoon maintained that it is “Not as bad as our government of course. But still.”

McAfee Denies Charges Against Him

The former presidential candidate insists that the U.S. government is after him for speaking the truth, particularly against the Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS). “I once publicly called the SEC a festering pustule on the face of America, and the IRS – a legalized criminal gang aspiring to be the equivalent of Hitler’s SS. These are the two agencies accusing me of hideous crimes. I can only assume that they took offense at my remarks.” Nonetheless, he affirmed: “I would not exchange my life in prison for a life of freedom in which I could not speak the truth.”

Regarding the $23 million dollar judgment against him, McAffee claimed: “It was a civil suit not a criminal issue. I never even responded to the suit. It was simply a default judgment.” He declared:

I am charged with tax fraud – which is lying on your tax return. I have filed no returns for many years and have made no secret of it. If I have said nothing how could I have lied. My real crime is speaking publicly about the insanity rampant within our system of government.

Responding to a question from the media about whether the U.S. justice system is just, he said: “If extradited, I face 35 years in prison for multiple counts of refusing to file tax returns. Had I chosen armed robbery, I would’ve received 5 years maximum. You tell me if it’s just.”

Furthermore, McAfee tweeted on Friday: “I’m in prison for refusing to file tax returns, while government bureaucrats use your taxes for private planes, lavish parties and all other benefits of their power.” Commenting on the upcoming U.S. presidential election, he said, “If you think this election, whatever its results, will change this system, you will be sadly disappointed.”

McAfee Still Pumping His Ghost Cryptocurrency

Although charged by the SEC for pumping tokens, McAfee is still pumping his ghost cryptocurrency. He confirmed from prison that Ghost is the only crypto project he is involved with at present. Recalling that he abandoned the project in August due to a fallout with the management, he clarified:

I have returned to controlling the Ghost development. My feud with management has ended. With the announcement that we will soon release a private stable coin, will mark a new era in transacting crypto business. Transaction fees will be shared amongst all Ghost holders.

“When our private stablecoin is released, it will revolutionize crypto transactions. I have capable managers and communicate frequently from prison,” he claimed. “My work with Ghost revolves entirely around our development of the world’s first private stablecoin. Version one will be a wrapped DAI. Later we will have a new stable, private blockchain. Holders of Ghost will share all transaction fee profits for the stablecoin.”

He also commented on Paypal’s announcement to begin supporting cryptocurrencies, including bitcoin, on its platform. “Paypal’s acceptance of cryptocurrency signals, I believe, a new wave of cryptocurrency acceptance worldwide. Governments around the world will have to get used to cryptocurrencies.” He further tweeted: “Paypal to take crypto. The IRS must be pissing itself.”

What’s Next for McAfee

The U.S. government wants him extradited from Spain, which McAfee says he is 100% certain will not happen because the Spanish “courts will see the clear resentment of the American government toward my public condemnations of their increasing corruption. They also understand how simple it is for a corrupt system to manufacture evidence that can prove anything against anyone who is a public enemy. They will decline my extradition,” he wrote. As such, he said he will not need a lawyer in the U.S., emphasizing that “There is zero chance that Spain will extradite me.”

McAfee revealed that when he is released, he will do “The same as before,” which is to “continue speaking against the cancer that has invaded every organ of the U.S. government bureaucracy.” He added that he is not sorry for what he has done. “I have followed my heart and stood up for my beliefs. I will never regret that,” he said.

On the subject of him allegedly being wanted for murder in Belize, McAfee insisted:

This is false. I was not charged with murder nor was I a suspect. The Belizean authorities will confirm this. I was a person of interest like all of the murdered man’s neighbors. I chose not to be questioned. I was already at war with the Belizean government.

McAfee posted his prison address on Friday after he said many people have asked for it. “Letters only. No packages. No money, drugs or weapons please. Everything is opened,” he warned. Finally, the cybersecurity tycoon said he would not reveal where he had been hiding: “I will not say. I may need to hide again someday.”

What do you think about John McAfee’s story? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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Sleepy Swiss town launches Tezos-backed Coronavirus aid program

What can I do to prevent this in the future?

If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware.

If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices.

Analyst: Ethereum Could Rally Towards $432 if Bulls Flip One Key Level

Altcoin Price

Analyst: Ethereum Could Rally Towards $432 if Bulls Flip One Key Level

  • Ethereum has continued seeing lackluster price action while Bitcoin rallies past its critical short-term resistance
  • The crypto is on the cusp of flipping its $390 resistance, however, which could give it freedom to rally significantly higher in the short-term
  • One trader is now noting that a surge up towards $432 could be in the cards if ETH can break above its short-term resistance level
  • This would be a significant rally that potentially puts a firm end to its phase of underperformance while BTC explodes higher

Bitcoin has been sucking all the oxygen out of the markets throughout the past couple of weeks, being one of the only cryptocurrencies to post consistent gains while most altcoins – including Ethereum – stagnate.

ETH’s lackluster price action as of late has been quite surprising, as it typically moves in lockstep with BTC.

Its inability to rally has also stopped many smaller altcoins from gaining any momentum, as they have been closely tracking Ethereum’s price action.

This trend may soon shift, however, as ETH is in the process of testing its $390 to $395 resistance.

One analyst contends that a break above this level could be all that is needed for its price to rocket up towards $432.

Ethereum Nears Key Resistance as Bulls Show Signs of Life

At the time of writing, Ethereum is trading up just under 2% at its current price of $389. This is a slight climb from its sub-$380 daily lows set just a handful of hours ago.

The cryptocurrency has long been struggling to break above $390 and $400 – with these two levels both acting as strong resistance in the past.

There’s a decent chance that they’ll continue suppressing its price action in the short-term, but a break above them could put a firm end to the pattern of consolidation and stagnation seen as of late.

Analyst: ETH Could Rally Towards $432 After Breaking One Key Level

While sharing his thoughts on where Ethereum might trend in the near-term, one analyst explained that a break above $395 could send the cryptocurrency up towards $432.

If this breakout does occur, it will also lead ETH past $420 – which is where an influx of selling pressure halted its latest rally.

“If ETH can flip $395 back to support, I think it’s headed straight to $432,” he said while pointing to the below chart.


Image Courtesy of Chase_NL. Source: ETHUSD on TradingView.

The coming day should provide some insights into where Ethereum will trend in the days and weeks ahead.

Featured image from Unsplash.
Charts from TradingView.

Bitcoin Could Rally to an All-Time High if It Hits One Key Level

Bitcoin could be on the cusp of posting a move to fresh all-time highs if it can close its monthly candle today above one critical level.

The benchmark cryptocurrency has been caught within the throes of an intense uptrend throughout the past several days and weeks, with each selloff being fleeting and followed by it setting higher highs.

This type of price action shows that it is now in a clear bull market, and the fundamental and technical strength underpinning it at the present moment suggests new all-time highs could be on the table.

One analyst is stating that a monthly close above $13,900 could be all that it takes to rally significantly higher in the days and weeks ahead.

In 2017 during the peak of the bull run, Bitcoin’s price was rejected at $20,000 mid-way through the month, with its monthly candle for December closing below $14,000.

This means that tonight’s monthly candle close could be one of the most significant ones that Bitcoin has ever seen before.

Bitcoin Rallies to Fresh Post-2017 Highs as Bulls Maintain Control 

At the time of writing, Bitcoin is trading up over 2% at its current price of $13,855. This marks a slight decline from its daily highs of $14,100 that were set overnight.

The cryptocurrency has not seen any sustainable declines since this uptrend first began, which is an incredibly positive sign that speaks to bulls’ current strength.

So long as buyers continue absorbing any intense selling pressure, there’s a strong likelihood that upside is imminent.

The key level to watch in the near-term is roughly $13,900, as a daily candle close above this level would allow BTC’s monthly candle to see its highest close ever.

Analyst: Break Above $13,900 Could Send BTC to Its All-Time Highs

Highlighting the importance of breaking and closing above $13,900, one analyst explained that he would not be surprised to see a rally to all-time highs of over $20,000 if Bitcoin’s monthly close takes place above this level.

“Lets close BTC above that green line on the monthly and send it to ATH,” he said.


Image Courtesy of Josh McGruff. Source: BTCUSD on TradingView.

Bitcoin bears have been vying to stop this from taking place, which means that it will require a significant influx of buying pressure in the coming hours for this crucial breakout to occur.

Featured image from Unsplash.
Charts from TradingView.

Bitcoin HODLers Have One More Reason to Celebrate Today

It was this day 12 years ago that Satoshi Nakamato, the pseudonymous creator of Bitcoin, released its white paper. However, Bitcoin HODLers have one more reason to celebrate today (and it has nothing to do with Halloween).

It was on 31 October 2008 that Satoshi released Bitcoin’s white paper, which was titled “Bitcoin: A Peer-to-Peer Electronic Cash System”. The original goal for Bitcoin was to be “a purely peer-to-peer version of electronic cash” that “would allow online payments to be sent directly from one party to another without going through a financial institution.”

This is how Satoshi anounced the release of this white paper on the Cryptography Mailing List:

Well, this Saturday, Bitcoin HODLers have not only the 12th anniversary of Bitcoin’s paper to celebrate because, according to data from CryptoCompare, at 10:05 UTC the Bitcoin price reached the intraday high of $14,077. This was the first time that the BTC price has been above the $14,000 level since 15 January 2018, as you can see from the 24-hour and three-year BTC-USD price charts shown below:

Since then, Bitcoin has retraced a bit, and currently (as of 17:05 UTC on October 31), Bitcoin is trading around $13,823, up 2.11% in the past 24-hour period.

Although throughout most of the COVID-19 pandemic Bitcoin has behaved like a risk-on asset, Bitcoin’s performance as an asset during this month has been pretty impressive. Despite all the fear and uncertainty that Bitcoin has faced as the result of concerns over the second/third wave of COVID-19 (and the resulting lockdowns around the world, especially in Europe), fiscal stimulus talks in Washington, the upcoming U.S. presidential election, Bitcoin is currently on track to end this month up 28.24%.

Yesterday, angel investor Qiao Wang, a former Director of Products at Messari, had this to say about Bitcoin’s amazing resilience in the face of all of these challenges:

Featured Image by “PublicDomainPictures” via Pixabay.com

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.