Bitcoin Drops to $80,000, Wall Street Hedge Funds Reduce Short Positions by 15%

As Bitcoin fell to the $80,000 mark, Wall Street hedge funds reduced their futures positions betting on a price decline by about 15%. With rising U.S. Treasury yields and inflation concerns increasing market volatility, they expanded trades to diversify risk. According to data from the U.S. Commodity Futures Trading Commission (CFTC), the net short position in Bitcoin futures held by leveraged funds decreased from 35,903 BTC on the 6th to 3,611 BTC on the 13th. During the same period, Bitcoin dropped nearly 3% from approximately $85,600 to $83,100. The hedge funds' simple short positions were recorded at 59,458 BTC, down by 6,437 BTC, while their long positions also decreased by 1,145 BTC to 28,847 BTC. In contrast, spread positions surged by about 48%, increasing by 2,719 BTC to 8,434 BTC. The open interest in Bitcoin futures on the Chicago Mercantile Exchange (CME) fell by about 3,567 BTC during the same period. Asset management firms maintained a net long position of approximately 18,440 BTC, with the net buying volume increasing by 547 BTC. Recently, Bitcoin fell below $83,000 as the U.S. consumer price index rose above expectations, and on the 15th, it dropped to around $79,730 due to wholesale price shocks. On the 19th, Bitcoin recovered to about $82,800.

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