Bitcoin: Are Crypto Whales on the CME Preparing for a Crypto Collapse?

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

Non-commercial large speculators bought 0.33 thousand Bitcoin contracts and sold 0.45 thousand, resulting in a net position that was negative for the first time since mid-August.

Hedgers (COMMERCIAL) decreased their net position for selling Bitcoin contracts by 0.56 thousand to 0.44 thousand. This marks the second consecutive week of a decrease in the net position, and for 4 weeks out of the last 6. The net position is now at its lowest point since mid-August.

Small speculators have been increasing their net position to buy Bitcoin contracts for the fourth consecutive week, with the number of contracts rising from 0.67 thousand to 0.89 thousand. This is the highest net position since July 18.

The number of open contracts rose by 3.12 thousand, bringing the total to 19.68 thousand.

The ratio of the number of contracts to sell to the number of contracts to buy for the bearish index of large speculators is 1.03.

Data from the Bitcoin Commitment of Traders (COT) report has revealed a significant rise in bearish sentiment among large speculators. After a period of contraction, large funds have liquidated their entire net upside position in BTC and opened a net downside position on the asset. This marks the first time in two months that the net position has become negative. If this trend continues, it could lead to a further decline in the cryptocurrency. However, large speculators have also been actively buying up BTC, with some not ruling out the possibility of further growth.

Hedgers who are looking at the long-term have also decreased their net position on Bitcoin's growth, reaching a two-month low.

For almost a month, small speculators have been increasing their net position on Bitcoin's growth from 7-month lows, leading to a growing bullish sentiment among these traders. However, this group of traders typically does not have a major influence on the market.

BTC

COT reporting data is essential for medium to long term trading. Generally, large speculators, NON-COMMERCIAL (banks, investment funds) tend to follow the trend (blue line). On the other hand, small speculators, NONREPORTABLE POSITIONS, usually do not have a major impact 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. Open interest is the total of all open positions in the market.