Bitcoin sees weaker speculative activities as price holds steady
According to a report from U.S. Commodity Futures Trading Commission (CFTC) on Friday, non-commercial investors, commonly treated as market speculators, held a net short position of 865 Bitcoin future contracts for the week ending Oct. 1.
Meanwhile, the total amount of the future contracts held by speculators decreased significantly, signaling that speculative activities over the cryptocurrency got weaker.
Speculators try to make a profit from the assets' price volatility.
When investors "short" some kind of financial assets like currencies, commodities, options or futures, they hold a bearish view on the asset and believe there will be a drop in the price.
This week, the price of the cryptocurrency saw moderate movements near 8,100 U.S. dollars, while its whole market value remained steady at about 146 billion dollars, according to trading website "Coinbase."
The Bitcoin futures, traded at Chicago Mercantile Exchange in the United States, are derivative financial contracts that obligate the parties to transact an underlying asset at a predetermined future date and price. The underlying asset of each Bitcoin future contract includes five Bitcoins.