Bitcoin: CME Crypto Whales Preparing for Crypto Takeoff?

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

Non-commercial large speculators liquidated 0.71 thousand contracts for bitcoin and opened a net buy position of 1.71 thousand, setting a new record in CME futures trading of almost 6 years. This net position exceeded the levels of September last year.

Hedgers (COMMERCIAL) bought 0.01 thousand Bitcoin contracts and liquidated their entire net position, opening a net sell position of 1.93 thousand. This net position surpassed the levels of May and set a new record in the history of trading.

Small speculators have decreased their net position to purchase Bitcoin contracts by 0.28 thousand contracts to 0.41 thousand over the past 8 weeks, with a decrease in 5 of those weeks. This is the lowest net position since May 23.

The open interest rose by 1,830 contracts, bringing the total to 17,260.

The ratio of the number of buy contracts to the number of sell contracts for the bullish index of large speculators is 1.13.

Data from the Bitcoin COT report shows that large speculators have become increasingly bullish on the cryptocurrency. Large funds have completely reversed their net position, closing their short positions and opening a record number of long positions. Buying activity was up 12% for the week, while selling activity decreased by 6%. If this trend continues, it could lead to further growth in the value of Bitcoin.

Hedgers who are in it for the long haul liquidated their entire net short position and established a new record for a long BTC position.

Net growth positions among small speculators in BTC have dropped to their lowest point in three months, leading to an increase in bearish sentiment among this group of traders. However, it is unlikely that this group will have a major influence on the market.

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 influence 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.