Bitcoin: Major Players on CME Are Aggressively Selling BTC

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

For the second week in a row, large speculators (NON-COMMERCIAL) have increased their net position for selling Bitcoin contracts, bringing it up to 1.75 thousand - the highest it has been since July 11. This is an increase of 1.29 thousand from the previous week.

Hedgers (COMMERCIAL) sold 0.44 thousand Bitcoin contracts and bought 0.90 thousand, liquidating their entire net position. This resulted in a positive net position for the first time since mid-August.

After a 4-week buildup, small speculators (NONREPORTABLE POSITIONS) decreased their net position to purchase Bitcoin contracts by 0.05 thousand contracts, bringing it down to 0.84 thousand. This marks the beginning of a decline from the highest levels seen since July 18.

The open interest decreased to 19.60 thousand contracts, a decrease of 0.08 thousand.

The ratio of the number of contracts to sell to the number of contracts to buy for large speculators increased by 0.08 over the week, bringing the bearish index to 1.11.

The Commitment of Traders (COT) data for Bitcoin has revealed a significant rise in bearish sentiment among large speculators. Over the past week, large funds have increased their net position on the decline of BTC, which opened a week earlier. This has caused the net position to reach levels not seen since July, which is the highest it has been in two years. Large speculators have increased their sales by 13% over the week. If this trend continues, it could lead to a further decrease in the value of the cryptocurrency.

Hedgers who are looking to the future have decreased their entire net positive position in Bitcoin and, for the first time in the past two and a half months, have opened a net negative position.

The sentiment of small investors in regards to the growth of Bitcoin has slightly decreased from its 3-month peak. This is a relatively rare occurrence, as the sentiment of large investors is usually in line with that of the smaller ones.

BTC

COT reporting data is essential for medium to long term trading. Generally, large speculators, NON-COMMERCIAL (banks, investment funds) tend to follow the trend (blue line). Small speculators, NONREPORTABLE POSITIONS, however, usually do not have much 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.