We have heard many loud statements from CEOs of large investment banks and companies. Many of them are strong supporters of tradfi meaning that they don’t see the inherent value of cryptocurrencies and the potential this industry has given the right circumstances.
However, their alignments with established narratives do not prevent them from investing in crypto as prices fall creating promising money-making opportunities.
The Commitment of Traders report is massive
The COT report indicates that institutional investors are increasing their exposure to Bitcoin by expanding portfolios with many long BTC positions indicating that the majority of large investors are seeing the potential for growth within a couple of years.
Diluting your portfolio with an asset that has major risks associated with it is often a way to balance the overall composition of investments.
Many people are hedging against the US dollar, the failing economy, and the housing market by investing in Bitcoin. Now, when prices are lower than they were in October, it is a golden opportunity to make money and protect yourself from various risks permeating the national US economy.
CME’s largest investors increased the number of long BTC positions by adding 147 new ones with the vast majority (over 80%) of all positions being long.
Note that these new positions make a notable 33% share of all open long positions on CME. The same is happening on many other exchanges with the number of long positions growing across the board.
The next week will be one of the most important in the last quarter of 2022 as more investors will show whether they have faith in Bitcoin.
The best scenario is the increase in price without any disruptive news stories by the end of the year which will create a firm platform for BTC to move in the upward direction at the beginning of 2023.
HODLers are excited about the immediate future
Long-term investors comprised primarily of Bitcoin enthusiasts are quite positive about the current predicament.
Investment firms and banks are bullish on many crypto assets with BTC and ETH receiving the most attention. It means that everyone is waiting for the next bull run and are willing to risk massive amounts of money.
Ezra Kloostra 
