CFTC data suggests further crypto price rises
Bitcoin and other cryptocurrencies, which have lost a combined 20% of their market capitalisations in August, could be due a rally according to the latest data from the Commodity Futures Trading Commission (CFTC).
The regulator’s latest commitment of traders report (COT) showed that for the week ending 21 August short positions – bets on further losses – on bitcoin futures fell by 210 contracts.
While the net position – longs betting on price rises, minus the shorts – remained 1,266 in favour of the shorts, the data showed something of a reversal from recent strongly-bearish sentiment.
Further gains possible
Some of this may have been due to a rally seen in recent days, and further gains from here could reinforce a rally in the futures market which could, in turn, prompt further gains on crypto exchanges.
Nigel Green at DeVere Group, which recently launched the digital currency exchange DeVere Crypto, said digital asset markets were subject to more volatility than traditional ones.
“Despite what the doom mongers would want you to believe, the recent sell-off was only ever going to be temporary and prices were bound to rise again relatively quickly – as they are now doing,” Green said.
He added that volatility was often seen in such markets as a welcome buying opportunity.
“Increasingly, savvy investors are aware that what is taking place is a maturation of a relatively new market – hence the highs and lows almost every other week,” he said.
On Monday morning, all of the top 10 cryptocurrencies by market capitalisation were trading higher, with bitcoin at a three-week high approaching the $7,000 level.
Price round up
Here’s a price round up at 11am [London time]:
- Bitcoin +3.4% at $6,929.90
- Ethereum +3.5% at $285.18
- Ripple +4.5% at $0.34
- Bitcoin cash +3.8% at $546.64
- Eos +4.5% at $5.39
- Stellar lumens +5% at $0.23
- Litecoin +4.9% at $60.21
- Tether +0.1% at $1
- Cardano +7.2% at $0.10
- Iota +13.9% at $0.71