The institutional long/short ratio has fallen below 2, leveraged shorts have been cut to a 52-week low, and basis trades are retreating—this combination of signals is worth a closer look.

CME Bitcoin market sees extreme positioning: asset managers' net long positions drop to $800 million, the lowest since the launch of spot ETFs; institutional long/short ratio at 1.97:1, confidence falls to post-ETF low. Hedge funds' net short positions decrease by 67.5%, leveraged funds' net short positions hit a 52-week low, with shorts falling to $3.53 billion. Crazzyblockk says funds are unwinding basis trades, with leveraged funds mainly using cash for arbitrage.