Bitcoin: CME bears hit the brakes?

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 decreased their net position to sell Bitcoin contracts by 0.18 thousand contracts, bringing it down to 2.07 thousand. This follows a significant two-week increase in the net position, which had reached its highest levels since early November 2021. Now, however, the net position has started to decrease.

Hedgers (COMMERCIAL) decreased their net position of buying Bitcoin contracts by 0.20 thousand contracts, bringing it down to 1.19 thousand. This decrease in net position follows a significant 2-week increase, and marks the beginning of a decline from the highest levels ever seen in the 6-year history of CME futures trading.

Small speculators (NONREPORTABLE POSITIONS) increased their net position to purchase Bitcoin contracts by 0.02 thousand contracts, bringing the total to 0.88 thousand. After a weekly decrease, small players slightly increased their net position to buy. The net position is close to the highest levels seen since July 18.

The open interest decreased by 1,820 contracts, bringing the total to 21,210.

The ratio of the number of contracts for sale to the number of contracts for purchase of the bearish index of large speculators stayed the same over the week, staying at 1.13.

Data from the Bitcoin Commitment of Traders (COT) report indicates that large speculators are becoming increasingly bullish. Over the past week, large funds have been actively reducing their sales and purchases, resulting in a slight decrease in the net position for BTC. This is the first time the net position has dropped from its highest levels in the past 25 months. If this trend continues, it could be a sign of a potential cryptocurrency rally. However, it is best to wait for the next weekly report to confirm the reversal of the net position.

Hedgers who were in it for the long haul decreased their net position as Bitcoin dropped from its record peak.

Net positioning of small speculators on Bitcoin growth has slightly increased, nearing five-month highs. This has caused a slight rise in bullish sentiment among small players, which is in line with the sentiment of larger investors, which is not a common occurrence.

BTC

COT reporting data is essential for medium to long term trading. Large speculators, NON-COMMERCIAL (banks, investment funds) usually trade in line with the trend (blue line). Small speculators, NONREPORTABLE POSITIONS, generally do not have a major impact on the market (red line). Hedgers, COMMERCIAL (operators, large companies) usually trade 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.