Bitcoin: net position of large speculators on CME updated 2-year peaks

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 sell Bitcoin contracts by 0.28 thousand contracts, bringing the total to 2.35 thousand. This is the highest net position since the start of November 2021. Over the past four weeks, large speculative players have been increasing their net position to sell, with a weekly reduction only occurring once.

Hedgers (COMMERCIAL) have upped their net position to purchase Bitcoin contracts by 0.12 thousand contracts, bringing the total to 1.31 thousand. This marks the third week out of the last four that hedger operators have increased their net position. The net position is now nearing the highest levels ever seen in CME futures trading since December 2017.

Small speculators have increased their net position to purchase Bitcoin contracts for the second consecutive week, bringing the total to 1.05 thousand contracts - a 0.17 thousand contract increase from the previous week. This is the highest net position since July 11.

The open interest rose by 2.03 thousand contracts, bringing the total to 23.24 thousand.

The ratio of the number of contracts to sell to the number of contracts to buy for large speculators increased by 0.01 over the week, bringing the bearish index to 1.14.

The COT report on Bitcoin has revealed a growing bearish sentiment among large speculators. Over the past week, large funds have been actively selling and buying, resulting in a net position that has reached its highest levels in over two years. This trend could potentially contribute to the further decline of the cryptocurrency.

Hedgers who are in it for the long haul have also increased their net negative position in Bitcoin, which is now close to reaching its highest point ever.

The growth of BTC to new highs in more than 5 months has caused small speculators to increase their net position. Although bullish sentiment is increasing among these traders, they typically do not have a major influence on the market.

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, 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.