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Hedge Funds Cut Bearish Bitcoin Futures Positions by 15%

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BTCUSD$81,748.03 −0.11%

Hedge funds trimmed their net bearish exposure to Bitcoin (BITSTAMP:BTCUSD) by almost 15% as the cryptocurrency's price trended down toward $80,000. Institutional leveraged funds held net short positions equal to 30,611 BTC for the week ending October 13, decreasing from 35,903 BTC recorded the previous week.

Alongside trimming direct short positions, institutional traders raised their offsetting futures holdings by nearly 48%. This shift significantly curbed their total directional exposure during a period of market instability. However, subsequent higher inflation data pulled Bitcoin down to around $79,730, creating uncertainty over whether fund managers maintained their reduced bearish stance or re-established short bets during the sell-off. Bitcoin currently trades near $81,490, down 0.43% on the day.

Market participants will look to the upcoming weekly futures positioning report scheduled for release on October 23. That update will outline trader positions as of October 20 and reveal whether hedge funds continued scaling back their short exposure following recent macroeconomic shifts.

Key points

  • Hedge funds decreased net short Bitcoin futures positions by nearly 15% to 30,611 BTC as of October 13.
  • Leveraged funds boosted offsetting futures positions by almost 48% to lower directional market exposure.
  • Bitcoin dropped to around $79,730 after higher-than-expected inflation reports before recovering to near $81,490.
  • The next official futures positioning report on October 23 will reveal trader stances through October 20.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

Why did hedge funds reduce their Bitcoin short positions?

Hedge funds lowered net short positions by nearly 15% and increased offsetting positions by almost 48% to reduce directional market risk as Bitcoin price fell toward $80,000.

How much Bitcoin short exposure do hedge funds currently hold?

Leveraged funds held net short positions equivalent to 30,611 BTC as of October 13, down from 35,903 BTC the week prior.

When is the next Bitcoin futures positioning report released?

The next official report is scheduled for release on October 23, which will cover trader positioning as of October 20.