Bitcoin: Crypto whales on CME update record net position

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 increased their net position to purchase Bitcoin contracts by 0.53 thousand, bringing the total to 2.04 thousand. This follows a slight decrease in the previous week, and marks the second time in three weeks that the net position has increased. The current net position is the highest ever recorded in the history of CME futures trading, surpassing the record set two weeks ago.

Hedgers (COMMERCIAL) have increased their net position to sell Bitcoin contracts by 0.45 thousand to a total of 2.53 thousand for the third consecutive week. This marks a new record high in the history of the net position, which has been tracked for almost 6 years.

The net position of small speculators (NONREPORTABLE POSITIONS) for the purchase of Bitcoin contracts decreased by 0.08 thousand contracts to 0.50 thousand, bringing it close to the minimum levels since May 23.

The open interest decreased by 1,210 contracts, bringing the total to 14,960.

The ratio of the number of contracts to buy to the number of contracts to sell for the bullish index of large speculators rose 0.08 over the week, reaching 1.21.

The COT data for Bitcoin has revealed a growing bullish sentiment among large speculators. Large funds have decreased their sales and purchases, resulting in an increase in their net position on BTC. This has led to the net position reaching new historical highs for the second time in the last three weeks. If this trend continues, it could be a contributing factor to the growth of the cryptocurrency.

For the third consecutive time, longer-term hedgers are revising their net position on the appreciation of Bitcoin.

Net position on BTC growth among small speculators has decreased, bringing the market back to 3.5-month lows. Although bearish sentiment has grown among smaller traders, this group typically does not have a major effect on the market.

The data from the upcoming report, to be released in a week, may be more revealing as the current report data could be distorted due to the monthly expiration of futures.

BTC

COT reporting data is essential for medium to long term trading. Large speculators, NON-COMMERCIAL (banks, investment funds) usually follow the trend (blue line). Small speculators, NONREPORTABLE POSITIONS, usually 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. Open interest is the total of all open positions in the market.