The institutions were listed on Bitcoin futures contracts to increase their long positions on the Chicago Mercantile Exchange (CME).
In the week ending October 13, institutional investors ‘ long positions rose more than 9 percent to 3,500 contracts, according to CoinDesk‘s report.
The figures were announced in a report released on Friday by the U.S. Commodity Futures Trading Commission (CFTC).
There have been many negative developments in cryptocurrency markets recently. While KuCoin was waging a war against us BitMEX, he was hit with a massive $200 million assault. Meanwhile, another major exchange, OKEx, announced yesterday that it was halting withdrawals indefinitely. One of the officials who kept the exchange’s passwords was detained by police as part of the investigation.
Bitcoin’s resilience reassures institutional investors
The Bitcoin price has shown good resistance to all these negative developments. The leading cryptocurrency by market capitalization is trading at $11,350 as of 19.30. It is believed that bitcoin’s resilience to these problems in the exchanges may have given institutions the confidence to increase their upward positions.
Sui Chung, CEO of CF Benchmarks, said: “if these events had happened last year, the downward impact on the price of Bitcoin would have been much greater.” expressions were used.
The derivatives market is not as dependent on BitMEX and OKEx as before
The derivatives market is now less dependent on exchanges like BitMEX and OKEx than it was a year ago. While the two exchanges alone accounted for more than 70 percent of the open position size in global bitcoin derivatives in September 2019, that number has now fallen to 40 percent.
It is noted that leading cryptocurrencies are therefore less sensitive to problems with exchanges. According to Chung, this is proof that the cryptocurrency industry is maturing.
