Bitcoin future shows weaker activities as coin price moves lower
Xinhua, Washington
Latest data of Bitcoin futures show that speculative activities weakened after the price of the iconic cryptocurrency dropped significantly in August, according to a report from US Commodity Futures Trading Commission (CFTC) on Friday.
For the week ending Aug. 27, non-commercial investors, commonly treated as market speculators, held a net short position of 1,185 Bitcoin future contracts. Meanwhile, the total amount of the future contracts held by speculators also dropped.
Besides, commercial traders, commonly treated as hedgers, also held a net short position of 26 contracts.
The price of the cryptocurrency had dropped nearly 460 US dollars to around 9,500 dollars since the beginning of August, according to trading website Coinbase.
Speculators and hedgers are different types of investors. Speculators try to make a profit from assets price volatility, whereas hedgers attempt to reduce or hedge the amount of risk created by price volatility during the holding period of the assets.
