Bitcoin: Crypto Whales Bearish on CME Near Multi-Year Highs

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

After a week-long increase, large speculators (NON-COMMERCIAL) decreased their net position to sell Bitcoin contracts by 0.05 thousand contracts to 2.30 thousand. This marks the beginning of a decline from the highest levels seen since early November 2021.

Hedgers (COMMERCIAL) decreased their net position for the purchase of Bitcoin contracts by 0.21 thousand contracts, bringing it down to 1.09 thousand. Over the last 3 weeks, Hedger operators have reduced their net position for the purchase of Bitcoin contracts twice. This net position has been decreasing from levels close to the highest ever seen in CME futures trading (since December 2017).

Small speculators (NONREPORTABLE POSITIONS) increased their net position to purchase Bitcoin contracts by 0.16 thousand contracts, bringing the total to 1.21 thousand. This marks the third consecutive week that small players have increased their net position to buy, surpassing the current year's levels and reaching the highest point since November 9, 2021.

The number of open contracts decreased by 0.71 thousand, bringing the total to 22.53 thousand.

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 1.14.

Data from the Bitcoin Commitment of Traders (COT) report indicates a slight rise in bullish sentiment among large speculators. Large funds have slightly decreased their net position on the BTC decline, which had previously reached its highest level in over two years. If this trend continues, it could be a positive sign for the future of cryptocurrency.

Hedgers who are in it for the long haul have also decreased their net negative position in Bitcoin, which has started to drop from its close to record-breaking peak.

Small investors are continuing to increase their holdings of Bitcoin, pushing the total to its highest level in over two years. This time, the sentiment of smaller traders is in line with that of larger ones, which is not a common occurrence.

BTC

COT reporting data is essential for medium to long term trading. Generally, large speculators, NON-COMMERCIAL (banks, investment funds) tend to follow the trend (blue line). On the other hand, small speculators, NONREPORTABLE POSITIONS, usually do not have much of an effect 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, while open interest is the total of all open positions in the market.