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Fred Cole

An editor at FOMOdrive

  • Jun 30, 2023
  • 2 min read

Bitcoin: crypto-whales on the Chicago exchange sell more than buy

bitcoin net position chart

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

For the second week in a row, large speculators (NON-COMMERCIAL) have decreased their net buying position on Bitcoin contracts, from 0.75k to 0.40k.

Hedgers (COMMERCIAL) decreased their net sell position on bitcoin contracts by 0.26k contracts to 0.93k. This marks the second consecutive week that hedger operators have reduced their net sell position.

Small speculators (NONREPORTABLE POSITIONS) increased their net buying position of Bitcoin contracts for the second week in a row, bringing it up to 0.53 thousand contracts - 0.09 thousand more than the previous week. This is the highest net position since May 9th.

The open interest rose by 2.44 thousand contracts, bringing the total to 15.69 thousand.

The ratio of the number of buy contracts to the number of sell contracts for the bullish index of large speculators decreased by 0.05 over the week, bringing it to 1.03.

Data from the Bitcoin Commitment of Traders (COT) report shows that large speculators are becoming increasingly bearish. Large funds increased their sales and purchases, resulting in a decrease in the net position of BTC. Sales rose by 23% for the week, while purchases increased by 18%. This trend has caused the net position to drop significantly from the previous week. 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 also decreased their overall exposure to the increasing value of Bitcoin.

The lateral consolidation of the net position on the growth of BTC was disrupted by small speculators. Although bullish sentiment has increased among these traders, they typically do not have a major influence on the market. 

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.

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