Bitcoin once reached 89K, have the IBIT short positions retreated?

Driven by the rise in Alphabet (GOOG) stock price and expectations of interest rate cuts, the market experienced a rebound during the Thanksgiving holiday week. The crypto market finally rebounded along with tech stocks. Yesterday, the overall market capitalization rose by 1.76% to return to 3 trillion dollars. Bitcoin (BTC) once reached 89K, while Ether (ETH) approached the 3,000 dollar mark. With the listing of the XRP ETF, XRP also saw a bright increase of over 8% yesterday. Bloomberg analyst Eric Balchunas pointed out that BlackRock's Bitcoin ETF IBIT's short positions have plummeted from about 2%, suggesting that the shorting sentiment in this wave has gradually faded.

Federal Reserve officials frequently signal dovishness, and the expectation of interest rate cuts in December boosts the stock market.

Tech stocks drive global markets higher as traders become more optimistic about the Federal Reserve's expected interest rate cut in December, starting a data-heavy week.

Federal Reserve Governor Christopher Waller said on Monday that he supports a rate cut next month, boosting market optimism. New York Federal Reserve Bank President John Williams also expressed a similar view last Friday, stating that the possibility of a rate cut remains. San Francisco Federal Reserve Bank President Mary Daly also expressed support for a rate cut in December during an interview on Monday. Although the Federal Reserve's December meeting is the next focal point for the market, investors can currently only rely on some outdated economic data due to the U.S. government shutdown causing delays in economic data.

According to the CME FedWatch Index, currently as high as 84% of investors believe that the Federal Reserve will cut interest rates by 25 basis points on December 10, far higher than the 42% a week ago.

As Thanksgiving and Black Friday approach, retail data for September is set to be released on Tuesday. Due to consumers still being under pressure from high prices, retail sales are expected to decline. Other data released this week includes the Producer Price Index for September (PPI) and durable goods orders. With the Federal Reserve relying more on other indicators in the absence of non-farm data, the initial jobless claims for the week of November's survey, released on Wednesday, will be particularly important.

Bitcoin once reached 89K, have the BIT short positions retreated?

The crypto market has finally rebounded alongside technology stocks. Yesterday, the overall market capitalization rose by 1.76%, returning to 3 trillion dollars. Bitcoin once reached 89K, and Ether approached the 3,000 dollar mark. With the listing of the XRP ETF, XRP also saw a remarkable increase of over 8% yesterday.

Bloomberg analyst Eric Balchunas pointed out that BlackRock's Bitcoin ETF IBIT's short positions have fallen from about 2% ( of the total outstanding shares ) big dump, nearly reaching the low point of April. According to data from S3 Partners. Although IBIT's short positions have never been particularly high, he noted that traders “short during the fall to seek a strong rebound before covering,” a pattern that is evident throughout the Bitcoin ETF complex.

When asked if he expects IBIT to have further declines, Balchunas said:

“I cannot predict the future. What I do know is that this asset has a 100% track record of being able to rebound from sometimes severe downturns and reach new historical highs.”

This article Bitcoin once touched 89K, has the IBIT short positions retreated? First appeared on Chain News ABMedia.