Bitcoin: Crypto Whales on CME Renew Two-Month Net Position Bottom

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

Non-commercial large speculators decreased their net position to purchase Bitcoin contracts from 0.82 thousand to 0.33 thousand. This follows a slight increase in the previous week, and marks the third time in the last five weeks that the net position has been reduced. This is the lowest net position since August 15.

Hedger operators have been decreasing their net position for selling Bitcoin contracts over the past 5 weeks, with a reduction of 0.67 thousand to 1.00 thousand. This marks a decrease in the net position for selling contracts for 3 out of the last 5 weeks.

Small speculators have been increasing their net position to buy Bitcoin contracts for the third consecutive week, with the number of contracts rising from 0.51 thousand to 0.67 thousand. This is the highest net position since August 15.

The open interest rose by 1.88 thousand contracts, bringing the total to 16.56 thousand.

The ratio of the number of contracts to buy to the number of contracts to sell for the bullish index of large speculators decreased by 0.08 over the week, bringing it to 1.03.

Data from the Bitcoin Commitment of Traders (COT) report has revealed a notable rise in bearish sentiment among large speculators. After a week-long hiatus, large funds resumed cutting their net position on BTC, actively increasing both sales and purchases. As a result, the net position has dropped to new lows over the past two months and may soon turn negative. If this trend continues, it could lead to a further decline in the value of the cryptocurrency.

Hedgers who are looking to the future have significantly decreased their net exposure to the appreciation of Bitcoin.

For the third week in a row, small speculators have been increasing their net position in Bitcoin, pushing it up from 7-month lows. Although bullish sentiment is growing among these traders, they typically do not have a major influence on the market.

BTC

COT reporting data is essential for medium to long term trading. Large speculators, NON-COMMERCIAL (banks, investment funds), usually trade in line with the trend (blue line). Small speculators, NONREPORTABLE POSITIONS, generally do not have a major impact 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. Open interest is the total of all open positions in the market.