WASHINGTON, Aug. 2 (Xinhua) -- Latest data of Bitcoin futures show that speculative activities weakened after the iconic cryptocurrency's price dropped dramatically, according to a report from U.S. Commodity Futures Trading Commission (CFTC) on Friday.
For the week ending July 30, non-commercial investors, commonly treated as market speculators, held a net short position of 1,002 Bitcoin future contracts. Meanwhile, the total amount of the future contracts held by speculators dropped.
Commercial traders, commonly treated as hedgers, also held a net short position of 26 contracts.
Speculators and hedgers are different types of investors: Speculators try to make a profit from the 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.
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.
The price of the cryptocurrency had recovered some of its losses after its latest plunge. The price of a single Bitcoin gained nearly 1,000 dollars to about 10,460 dollars after July 30, according to trading website "Coinbase."
Established in 1974, the CFTC is an independent agency of the U.S. government. It regulates futures and option markets, and posts weekly reports on the position of future contract holders to help the public understand market dynamics.
