Unwinding of overheated dollar bets could support BTC downside

While Bitcoin continues to show weakness, an unwinding of overheated bets on a stronger U.S. dollar and higher interest rates could provide downside support for the cryptocurrency, CoinDesk reported. According to data from the U.S. Commodity Futures Trading Commission (CFTC) and Intercontinental Exchange (ICE) Europe, net long positions on the dollar rose by 18% to $34.5 billion in the week ending June 22, the highest level in seven years. Additionally, speculative funds such as hedge funds held a record 2.97 million short contracts on U.S. short-term interest rate futures. CoinDesk analyzed that if oil prices fall and the U.S. employment data released on July 3 comes in below expectations, these crowded bets could unwind quickly. "This scenario would lead to a weaker dollar and lower interest rates, which could positively affect risk assets like BTC," the outlet noted.