Bitcoin: CME crypto whales no longer believe in a decline

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

For the third consecutive week, large speculators (NON-COMMERCIAL) have decreased their net sell position on bitcoin contracts, dropping from 0.69k to 1.16k. This marks a decrease in the net buy position from the highest levels since the start of November 2021.

Hedgers (COMMERCIAL) decreased their net purchase of bitcoin contracts by 0.61k contracts to 0.20k for the second consecutive week. This net position has been decreasing since reaching a record high two weeks ago.

Small speculators have decreased their net position to purchase Bitcoin contracts by 0.09 thousand contracts, bringing the total to 0.97 thousand. This marks the second time in the last three weeks that small speculators have reduced their net position. Despite this, the net position is still close to the highest levels ever seen in CME futures trading.

The open interest decreased from 16.31 thousand contracts to 15.46 thousand, a decrease of 0.85 thousand contracts.

The ratio of the number of contracts for the sale to the number of contracts for the purchase of the bearish index of large speculators decreased by 0.05 over the week, bringing it to 1.10.

Data from the Bitcoin Commitment of Traders (COT) report shows that large speculators have become more bullish. Last week, large funds reduced their net position on the decline of BTC by a significant amount. In the past three weeks, the net position has dropped by almost half of the highest levels seen in the last 20 months. Additionally, large funds decreased their sales by 8% in the same period. If this trend continues, it could lead to an increase in the value of the cryptocurrency.

Hedgers who are looking to the future are reducing their net negative position from the highest it has ever been.

The net position of small speculators on BTC growth has decreased slightly, leading to an increase in bearish sentiment among this group of traders. However, their influence on the market is usually not very significant.

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.