Bitcoin: crypto whales on CME increased sales by 15%

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

Non-commercial large speculators increased their net sell position on bitcoin contracts by 0.61k to 1.15k, after a 5-week decline. This marks the first time the net position has grown from its minimum levels since June 20.

After two weeks of being in negative territory, Hedgers (COMMERCIAL) liquidated their entire net sell position of 0.09k contracts in bitcoin and opened a net buy position of 0.46k, thus turning their net position positive again.

After a 3-week decline, small speculators (NONREPORTABLE POSITIONS) increased their net position to buy Bitcoin contracts by 0.07 thousand contracts, bringing the total to 0.69 thousand.

The open interest rose by 1.88 thousand contracts, bringing the total to 16.74 thousand.

The ratio of the number of sell contracts to the number of buy contracts for large speculators increased by 0.04 over the week, reaching a bearish index of 1.09.

After the monthly expiration of futures, large speculators have become increasingly bearish on Bitcoin, as evidenced by the COT data. Large funds have been actively selling and buying, resulting in a net position on the decline of BTC. The net short has started to rise again after being reduced by 3/4 from the highs of the end of June. In the past week, large funds have increased their sales by 15%. If this trend continues, it could lead to a further decrease in the value of the cryptocurrency.

Hedgers who are looking to invest for the long-term have created a net short position in the cryptocurrency market.

After several weeks of contraction, small speculators have increased their net position on Bitcoin's rise, leading to a rise in bullish sentiment among these traders. However, this group of traders typically does not 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 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.