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Fred Cole

An editor at FOMOdrive

  • Jun 22, 2023
  • 2 min read

Bitcoin: large speculators on the CME increased purchases by 12%

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

After two weeks of decline, large speculators (NON-COMMERCIAL) increased their net buying position on Bitcoin contracts from 0.58k to 0.77k. This marks the beginning of a growth in the net position from the lowest levels since May 2.

Hedgers (COMMERCIAL) reversed their 2-week decline by increasing their net sell position on bitcoin contracts by 0.57k contracts, bringing it up to 1.20k.

Small speculators (NONREPORTABLE POSITIONS) decreased their net purchase of Bitcoin contracts by 0.01 thousand contracts, bringing the total to 0.43 thousand. This slight decrease in net buying comes after a weekly increase, and the net position is close to the lowest it has been since March 7.

The open interest rose by 1,310 contracts, bringing the total to 13,030.

The ratio of the number of buy contracts to the number of sell contracts for the bullish index of large speculators increased by 0.06 over the week, reaching 1.08.

The data from the Bitcoin Commitment of Traders (COT) report shows a clear rise in bullish sentiment among large speculators. After the monthly expiration of futures, large funds increased their net position in anticipation of BTC growth. This was seen as a significant increase from the minimal levels of the previous month. In the week following, large speculators increased their purchases by 12%. If this trend continues, it could be a positive sign for the future of the cryptocurrency.

Hedgers who are in it for the long haul have significantly increased their net position in regards to the growth of Bitcoin.

Net BTC growth position of small speculators has decreased slightly, and is now close to its lowest point in the last three months.

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, do not have much of an effect 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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