Bitcoin: Crypto Whales on CME Cut Net Shorts by 74%

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

Non-commercial large speculators have decreased their net sell position on bitcoin contracts by 0.11k to 0.54k, marking the fifth consecutive week of reduced net buy positions. This is the lowest net position since June 20.

Hedgers (COMMERCIAL) decreased their net sell position on bitcoin contracts from 0.09k contracts to 0.09k. This was the first time in 5 weeks that the hedger operators had reduced their net sell position, which had been opened a week prior.

For the third consecutive week, small speculators (NONREPORTABLE POSITIONS) have decreased their net buying position in bitcoin contracts, this time by 0.20 thousand contracts, bringing it down to 0.63 thousand.

The open interest decreased by 1,160 contracts, bringing the total to 14,860.

The ratio of the number of sell contracts to the number of buy contracts for the bearish index of large speculators stayed the same over the week, staying at 1.05.

The data from the Bitcoin Commitment of Traders (COT) report indicates that large speculators have become increasingly bullish. Major funds have been reducing their net short position on BTC for over a month, with the net short position dropping by 74% from its peak in late June. Additionally, the net position has been hitting new lows for the past six weeks. If this trend continues, it could be a positive sign for the future of the cryptocurrency.

Hedgers who had a longer-term outlook decreased the net position of the cryptocurrency, which had opened a week prior.

The net position of small speculators on BTC growth is decreasing, and bearish sentiment is increasing among them. However, this group of traders usually does not have a major effect on the market.

The data from the previous report may be skewed due to the monthly expiration of futures. Therefore, the data from the upcoming report, to be released in a week, will be more indicative.

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.