NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: LINK Price Climbs Following Chainlink's Deal With US Commerce Department, Eyes $30
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: LINK Price Climbs Following Chainlink's Deal With US Commerce Department, Eyes $30

Hedge Funds Heavily Betting For Bitcoin To Fall: Will This Strategy Fail?

Dalmas Ngetich
Dalmas Ngetich
1 year ago
2 mins read
Is $100K Bitcoin Inevitable?

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Looking at the formation in the daily chart, there is no relief for Bitcoin at spot rates. Following the flash crash on June 6, prices reversed sharply from the $72,000 level, further highlighting the significance of the liquidation level.

In the past, Bitcoin prices have recoiled from this level, with analysts expecting a short squeeze to print once this line is breached.

Hedge Funds Are Short Selling Bitcoin Futures: Will This Strategy Backfire?

Amid this slip, one analyst on X notes that hedge funds and Wall Street firms have increasingly taken short positions on Bitcoin futures contracts, expecting BTC prices to plunge.

Though they could be net long on the spot market, taking advantage of the fee differential, the trader notes that this strategy is risky. If anything, massive losses could occur should prices unexpectedly spike.

Between the current price point and slightly above all-time highs at $74,000, exchange data and trader notes show $12 billion worth of short positions on BTC futures.

Hedge funds selling BTC | Source: @olvelez007 via X
Hedge funds selling BTC | Source: @olvelez007 via X

This move means that hedge funds are net bearish, and since everyone knows the big boys of Wall Street are shorting, this move could backfire spectacularly.  

Even so, hedge funds selling BTC futures are nothing new. Often, hedge funds tend to short the futures of a given product and simultaneously buy the spot markets, taking advantage of the carry trade to profit.

Related Reading

Shiba Inu price

Shiba Inu Price Could Skyrocket By 1,100%, Predicts Analyst

1 year ago

The problem is that this hedging tactic is popular in traditional finance and has been profitable before. On the other hand, Bitcoin is a new asset class that is outside the traditional finance system.

Accordingly, the strategy might not pan out exactly as expected, leading to massive losses.

BTC Fragile But Spot ETF Issuers On A Buying Spree

Whether Bitcoin will recover from spot rates remains to be seen. As it is, BTC is under immense selling pressure, dropping from $72,000.

Bitcoin price trending sideways on the daily chart | Source: BTCUSDT on Binance, TradingView
Bitcoin price trending sideways on the daily chart | Source: BTCUSDT on Binance, TradingView

Although the uptrend remains, buyers are yet to reverse the June 6 losses, meaning the path of least resistance in the short term is southwards. A break below $66,000 would completely wipe out gains of May 20, signaling a trend shift.

Related Reading

Notcoin

Notcoin (NOT) Develops Falling Wedge Triangle: Rally Looms?

1 year ago

Still, buyers are upbeat about what lies ahead. Last week, despite the contraction, all spot Bitcoin exchange-traded fund (ETF) issuers in the United States have been on a buying spree.

Spot BTC ETF issuers buying | Source: @HODL15Capital via X
Spot BTC ETF issuers buying | Source: @HODL15Capital via X

According to HODL15 Capital, in the first week of June, they added 25,729 Bitcoin. This stash is equivalent to roughly two months’ worth of mined coins and is the highest weekly buying activity since mid-March. Then, BTC rose to all-time highs of around $73,800.

Feature image from DALLE, chart from TradingView
Tweet123Share196ShareSend
Dalmas Ngetich
Dalmas Ngetich

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

Read more

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

Close

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Ethereum

Ethereum Price Stuck In ‘Loading Phase’, What This Means For The Campaign For $5,000

The Ethereum price continues to test investors’ patience as it consolidates just beneath critical resistance levels. A crypto analyst has...

Scott Matherson 4 hours ago
Trump

WLFI Slides 15% After Launch As Trump Token Team Eyes Burn Strategy

World Liberty Financial’s Trump-linked WLFI token plunged in price after a high-profile debut, prompting its backers to propose an aggressive...

Christian Encila 6 hours ago
Dex Volume Hits Over $1T in August: Why Best Wallet Token Stands To Gain

Dex Volume Hits Over $1T in August: Why Best Wallet Token Stands To Gain

The decentralized exchange (DEX) market has just reached a historic milestone, with over $1.15 trillion in volume processed during August....

Aaron Walker 6 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

ethereum

Ethereum’s Latest Rally Fueled By Large-Scale Binance Orders, Analyst Says

Ash Tiwari 1 hour ago
Bitcoin

Metaplanet Becomes A Global Bitcoin Powerhouse with 20,000 BTC Hoard, More Buys Ahead?

Godspower Owie 2 hours ago
dogecoin_doge_dogeusd_5_optimized

Dogecoin Price Set For Explosive Rally If This Structure Holds

Sandra White 3 hours ago

Premium Sponsors

Press Releases

  • 12億ドルの売り越し、市場は調整局面に突入か?

    イーサリアム...

    2 hours ago
  • ビットコイン...

    3 hours ago
  • シバコイン 今後の行方

    シバコイン...

    3 hours ago
  • パイネットワーク...

    3 hours ago
  • 1 najbolja kriptovaluta za kupiti prije nego što poraste za 3.536%, prema Cathie Wood (ARK Invest)

    1 najbolja kriptovaluta za kupiti prije nego što poraste...

    4 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.