I think you don't understand the situation. There is literally 0% chance that "all hedge funds are shorting Bitcoin". What does the article say? It shows a chart saying net nominal position of hedge funds in futures is negative. That is absolutely to be expected, especially thanks to vehicles such as GBTC (Grayscale) and their 6-month lock up period.
You can read more e.g. here: Grayscale Trust and ‘The Effect’ on Crypto Prices
This is not evil, mad, price surpressing or a bad sign. Same thing is happening e.g. in gold or in silver. The same thing is also happening in options - say you buy a call option (on GME as it is now the best stock in the world), the option seller on the other side will want to "hedge" its delta position by buying some stock themselves as they just sold you the call option. Therefore this option seller will now appear to behave as a "hedge fund" with an opened long position whilst in reality they do not care at all about the price and only want to make money on the premium.
The situation with Bitcoin is different because as a hedge fund you can be long/short in three different asset classes (actual physical Bitcoin, Bitcoin futures, GBTC ETN) which creates like 6 different scenarios and none of them will show you the true market sentiment. So the entire article and the chart in it is bulls**t.
You can read more e.g. here: Grayscale Trust and ‘The Effect’ on Crypto Prices
This is not evil, mad, price surpressing or a bad sign. Same thing is happening e.g. in gold or in silver. The same thing is also happening in options - say you buy a call option (on GME as it is now the best stock in the world), the option seller on the other side will want to "hedge" its delta position by buying some stock themselves as they just sold you the call option. Therefore this option seller will now appear to behave as a "hedge fund" with an opened long position whilst in reality they do not care at all about the price and only want to make money on the premium.
The situation with Bitcoin is different because as a hedge fund you can be long/short in three different asset classes (actual physical Bitcoin, Bitcoin futures, GBTC ETN) which creates like 6 different scenarios and none of them will show you the true market sentiment. So the entire article and the chart in it is bulls**t.
