Bitcoin: Crypto whales on CME open "net buys" for the first time in two months

The Commodity Futures Trading Commission (CFTC) COT (Commitments of Traders) reports for the week ending on Tuesday last week showed that

Non-commercial large speculators liquidated 0.29k of their net sell position of Bitcoin contracts and opened a net buy position of 0.17k, resulting in a positive net position for the first time since the start of March.

Hedgers (COMMERCIAL) have been increasing their net sell position on bitcoin contracts for the third consecutive week, bringing it up to 0.82k from 0.52k. This is the highest net position since December 27 of last year.

After a 3-week decrease, small speculators (NONREPORTABLE POSITIONS) slightly increased their net buying position in bitcoin contracts, bringing it up to 0.65k from 0.06k.

The open interest decreased by 1,540 contracts, bringing the total to 12,520.

The ratio of the number of buy contracts to the number of sell contracts for the bullish index of large speculators is 1.02.

The data from the Commitment of Traders (COT) report on Bitcoin (BTC) indicates that large speculators are becoming increasingly bullish. For the first time in the past two months, large funds have opened a net position in favor of BTC growth. If this trend continues, it could be a positive sign for the future of the cryptocurrency.

Hedgers with a long-term outlook have been optimistic, increasing their net position on BTC to the highest levels since the end of December 2020.

This week, small investors and large investors alike had a similar sentiment, resulting in a slight increase in the net position of small speculators on the growth of Bitcoin.

The data from the previous report may be skewed due to the monthly expiration of futures. Therefore, the data from the upcoming report, to be released in a week, will be more indicative.

COT report data is essential for medium and long-term trading, and is mainly used by large speculators, NON-COMMERCIAL (banks, investment funds). These traders usually follow the trend (blue line). Small speculators, NONREPORTABLE POSITIONS, however, have little influence on the market (red line). Hedgers, COMMERCIAL (operators, large companies) usually go against the trend (black line). The net position is the difference between the number of buy and sell contracts, while open interest is the total of all open positions in the market.