Be careful, it will shake – In December, the dollar short was the most popular operation by hedge funds. Although bitcoin buying has climbed to number one in this ranking , dollar shorts remain very popular. And it could backfire on hedge funds.
Record short positions on the dollar
Since the onset of the health crisis and the resumption of massive banknote printing , the dollar has shown signs of weakness . Institutional investors saw these signals and all wanted to take advantage of the downturn. You can see above the drastic increase in short positions during the year 2020 – as a bar graph on the chart .
Some fund managers have said they have taken profit on the dollar because they fear a sudden rebound in the TEN – the Dollar Index which is used to bet on the dollar against a basket of currencies.
Indeed, we can observe that the TEN seems to have found a new low. The weekly chart shows us this new low on the level of the decline of 2018.
A strong rebound in the area, similar to 2018, could undermine the operators position saleswoman . Furthermore, Bitcoin is rarely bullish when the dollar appreciates strongly.
Hegde funds are looking for new prey and are shorting Bitcoin
Hedge funds don’t just short the dollar, they also short the Bitcoin . As you can see, there has never been as short positions of hedge funds on Bitcoin futures .
According to some observers , this could make Bitcoin one of the next targets for WallStreetBets bettors . However, this possibility must be qualified by looking at the net positions of these funds. That is to say the accumulation of their long and short positions.
As you can see, we have a majority of short positions in hedge funds. So there are obviously some players who are exclusively in the short position .