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

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

For the third week in a row, large speculators (NON-COMMERCIAL) have decreased their net selling position in Bitcoin contracts, reducing it from 1.35 thousand contracts to 0.88 thousand. This follows a sharp two-week increase that brought the net position to its highest level since July 11.

Hedgers (COMMERCIAL) decreased their net position to purchase Bitcoin contracts by 0.04 thousand, bringing the total to 0.44 thousand. This marks the third consecutive week that hedger operators have reduced their net position to buy contracts.

Small speculators (NONREPORTABLE POSITIONS) decreased their net position of buying Bitcoin contracts by 0.43 thousand contracts for the second consecutive week. This is a continuation of the downward trend from the highest levels seen since July 18.

The open interest rose by 0.74 thousand contracts, bringing the total to 21.94 thousand.

The ratio of the number of contracts to sell to the number of contracts to buy for large speculators decreased by 0.03 over the week, bringing the bearish index to 1.05.

Data from the Bitcoin Commitment of Traders (COT) report indicates that large speculators have become increasingly bullish on the cryptocurrency. Over the past week, large funds have been actively buying and selling Bitcoin, resulting in a decrease in the net position for the decline of BTC. Additionally, the net position has been steadily decreasing since reaching its peak in July, which was the highest it had been in two years. In the last three weeks, large speculators have halved their net position, which could be a sign of further growth for the cryptocurrency.

Hedgers who are in it for the long haul have slightly decreased their net holdings in response to the drop in the value of Bitcoin.

Net position on BTC growth among small speculators has been cut in half. Bearish sentiment has increased significantly among this group, however, they typically do not have a major effect on the market.

BTC

The COT report, which is essential for medium to long-term trading, was postponed due to US holidays. Generally, large speculators, NON-COMMERCIAL (banks, investment funds), tend to follow the trend (blue line), while small speculators, NONREPORTABLE POSITIONS, have little impact on the market (red line). On the other hand, 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.