Bitcoin: hedgers on CME opened a net position for the growth of BTC

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

Non-commercial large speculators decreased their net sell position on bitcoin contracts from 0.52k to 0.65k. This marks the fourth consecutive week that these large speculative players have reduced their net buy position, which is now the lowest it has been since June 20.

After 5 weeks of having a positive net position, Hedgers (COMMERCIAL) liquidated their entire net buy position of 0.20k Bitcoin contracts and opened a net sell position of 0.18k, resulting in a negative net position.

Small speculators have decreased their net position to purchase Bitcoin contracts by 0.14 thousand contracts over the last four weeks, bringing the total to 0.82 thousand. This marks a decrease in net position to buy for three of the last four weeks.

The open interest rose by 0.56 thousand contracts, bringing the total to 16.02 thousand.

The ratio of the number of sell contracts to the number of buy contracts for the bearish index of large speculators decreased by 0.05 over the week, bringing it to 1.05.

The COT data for Bitcoin indicates that large speculators have a growing bullish sentiment. Over the past month, large funds have been decreasing their net position in BTC, which has now reached its lowest point in the last month. During this time, large funds have decreased their sales by 3% and increased their purchases. If this trend continues, it could be a positive sign for the future of the cryptocurrency.

Hedgers who trade for the long-term have, for the first time in the past month, established a net position in favor of the expansion of cryptocurrency.

The net position of small speculators on BTC growth is decreasing, and bearish sentiment is increasing among this group of traders. However, their influence on the market is usually not very significant.

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 influence 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.