The cryptocurrency market is witnessing a significant change in the way markets operate currently, with institutional investors taking on historically high long positions on Bitcoin.
This positioning imbalance has been observed through analysis of non-commercial traders' data, including hedge funds and financial institutions. The Commitment of Traders (COT) report indicates that these entities are no longer using short hedges and have instead gone 'max long', dropping the net short line below zero on the log scale Bitcoin futures market.
This type of positioning has been a strong indication of future price movements in the past. Similar to what was seen before Bitcoin's major run-up in Q-3 2023, current positioning reflects strong institutional interest and conviction about Bitcoin's future value.