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Leveraged funds cut BTC short exposure, but bullish confirmation still mixed
CFTC data as of July 28 showed leveraged funds reduced net bearish exposure by 5,566.5 BTC-equivalent, while asset managers also weakened their directional net position by 2,204.3 BTC-equivalent over the same week.
Leveraged funds trimmed their net bearish exposure in CME standard and micro Bitcoin futures, but the shift did not deliver the broad bullish confirmation some Bitcoin traders were seeking, according to a July 31 CFTC futures-only report compiled from positions as of July 28. Across the week from July 21 to July 28, leveraged funds’ combined directional net narrowed by 5,566.5 BTC-equivalent, with the standard Bitcoin futures net improving by 1,076 contracts, equal to 5,380 BTC, and the micro Bitcoin futures net improving by 1,865 contracts, equal to 186.5 BTC. The CFTC report measures directional net exposure as longs minus shorts, excluding spreading positions, and it does not identify why each position is held.
In the same window, the direction of asset managers moved the other way, with their combined directional net weakening by 2,204.3 BTC-equivalent. Specifically, the standard-contract net for asset managers fell by 428 contracts, or 2,140 BTC, while the micro-contract net fell by 643 contracts, or 64.3 BTC.
The report also highlighted that contract-level activity can be consistent with expiry rolling or basis activity, based on CME settlement prices for July at $64,775, August at $65,085, and September at $65,335, with open-interest changes showing July down by 1,942 contracts and August up by 1,838. The CFTC methodology classifies traders by business purpose on Form 40 and cannot determine the specific rationale behind each position, leaving the broader read on sentiment unresolved.
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