I've seen this as well, and I'm not entirely sure that's really the case. I'll preface this by saying I have absolutely no idea what hedge funds are doing, but if I had to guess I would say that it's likely they are just going short futures to hedge their even larger recent long positions.
I think you need to look at how much hedge funds have gone long bitcoin in the past few months (which appears to be quite significant) and compare the short interest to that to get a real idea of what's going on.
I've seen this as well, and I'm not entirely sure that's really the case. I'll preface this by saying I have absolutely no idea what hedge funds are doing, but if I had to guess I would say that it's likely they are just going short futures to hedge their even larger recent long positions.
I think you need to look at how much hedge funds have gone long bitcoin in the past few months (which appears to be quite significant) and compare the short interest to that to get a real idea of what's going on.
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