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Bitcoin: big speculators on CME buy Bitcoin on the fall

Bitcoin: big speculators on CME buy Bitcoin on the fall

According to the COT (Commitments of Traders) reports provided by the Commodity Futures Trading Commission (CFTC) - for the week ended last Tuesday:

Large speculators (NON-COMMERCIAL) reduced the net position for the sale of bitcoin contracts by 0.28 thousand contracts to 1.20 thousand. Large speculative players reduce the net position for sale for the second week in a row, and for 6 weeks out of the last 8. The net position was the lowest in the last three weeks.

Small speculators (NONREPORTABLE POSITIONS) reduced the net position to buy bitcoin contracts by 0.06 thousand contracts to 1.11 thousand Small speculators reduce the net position to buy 7 weeks out of the last 8.

Hedgers (COMMERCIAL) reduced the net position for the purchase of bitcoin contracts by 0.22 thousand contracts to 0.09 thousand. Hedger operators cut their net position for the second week in a row.

Open interest increased by 0.35 thousand contracts to 7.95 thousand.

The bearish index of large speculators (the ratio of the number of contracts for sale to the number of contracts for purchase) fell by 0.09 to 1.25 for the week.

Summary: COT reports on bitcoin reflect the growth of bullish sentiment among major speculators. Large funds began to increase purchases and sales after the monthly expiration of futures. At the same time, the net position on the decline of BTC was reduced by 19%, becoming the lowest in the last three weeks. The continuation of this trend may contribute to the growth of the cryptocurrency.

Hedgers have significantly reduced their net position on the decline of bitcoin. Among them, bullish sentiment on cryptocurrency has also increased.

Small speculators in the last week mainly increased sales. Bearish sentiment continues to grow among small speculators, but this group of traders usually does not have a significant impact on the market.

Note: COT report data is fundamental and is mainly used for medium and long-term trading. Large speculators, NON-COMMERCIAL (banks, investment funds) usually trade according to the trend. Small speculators, NONREPORTABLE POSITIONS-usually do not have much influence on the market. Hedgers, COMMERCIAL (operators, large companies) usually trade against the trend. The net position is the difference between the number of buy and sell contracts. Open interest is the sum of all open positions in the market.

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With this range of per capita income, families have the money to buy cars, household appliances and other goods that require a lot of raw materials.Industrially developing countries are also building railways, highways, hospitals and other public infrastructure.The demand for goods above $20,000 per capita begins to decline as the wealthier segments of the population spend the increase in wealth on services such as better education, health care and recreation.The coronavirus pandemic has changed this dynamic. Since many families are isolated, spending is shifting from services to goods, even in the wealthiest countries, such as the United States. In many ways, American and European consumers have been behaving in the same way as the population of developing countries for several months, spending money on buying various goods, from new bicycles to televisions.The US economy is the best example of this trend. 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