Bitcoin: big and small players on CME expect BTC to skyrocket

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

Non-commercial large speculators decreased their net position to purchase Bitcoin contracts by 0.01 thousand to 1.51 thousand. This slight decrease in net position follows a sharp increase the week prior. The net position is now close to the highest levels ever recorded in the CME's futures trading history (nearly 6 years).

Hedgers (COMMERCIAL) have further increased their net sell position on bitcoin contracts by 0.15k, bringing it up to 2.08k. This marks the second consecutive week that hedger operators have increased their net sell position, setting a new record high compared to last week.

Small speculators (NONREPORTABLE POSITIONS) increased their net position to purchase Bitcoin contracts by 0.16 thousand contracts, bringing the total to 0.57 thousand. After decreasing their net buy position for 5 out of 8 weeks, these speculators began to increase their net position from the lowest levels since May 23rd.

The open interest decreased by 1,090 contracts, bringing the total to 16,170.

The ratio of the number of buy contracts to the number of sell contracts for the bullish index of large speculators stayed the same over the week, staying at 1.13.

The data from the Bitcoin Commitment of Traders (COT) report shows a slight shift in bullish sentiment among large speculators. Despite this, the net position of large funds on the growth of BTC has not changed much over the week and remains close to its all-time high. This suggests that large speculators are still expecting the cryptocurrency to continue to grow in the near future.

A record net position for BTC growth has been updated by longer-term hedgers.

The rise of BTC from its 3-month low was accompanied by an increase in net positions among small speculators. This is an uncommon occurrence, as the sentiment of the larger players usually differs from that of the smaller ones.

BTC

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 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, while open interest is the total of all open positions in the market.