Hedge Funds Bet Against Bitcoin As Rally Subsides


(MENAFN- Yolo Wire) The largest U.S. hedge funds are betting that the price of %Bitcoin (CRYPTO: $BTC) will continue to fall after enjoying a big rally in this year's first quarter.

Short interest in Bitcoin among hedge funds, which are bets that the price will decline over the near-term, are currently at record levels, according to data from the U.S. Commodities Futures Trading Commission (CFTC).

Hedge funds in America now have more than 16,000 futures contracts on the Chicago Mercantile Exchange betting that Bitcoin's price will fall. That's the most since Bitcoin futures began trading in the U.S. in 2017.

The record build-up in short positions comes after Bitcoin's price hit an all-time high of just under $74,000 U.S. on March 14 of this year.

Bitcoin is currently trading at $67,300 U.S. per token. The largest cryptocurrency had enjoyed a big rally after regulators approved spot Bitcoin exchange-traded funds in January.

Hedge funds are now betting that the good times are over... for now.

However, the bearish sentiment among hedge funds runs counter to the bullish optimism of retail investors who expect Bitcoin's price to rise ahead of a halving event later in April.

The halving event will see the amount of Bitcoin that can be mined cut by 50%. Bullish investors expect the reduced supply to drive prices higher in coming months.

But hedge fund managers, and some analysts, are discounting the impact of the halving event on Bitcoin's future price.

JPMorganChase (NYSE: $JPM) recently put out a note to clients forecasting that Bitcoin's price will fall to $42,000 U.S. after the hype surrounding the halving event dies down.

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