Bitcoin: large funds on CME actively curtail the "net net short"
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 0.34 thousand contracts to 1.93 thousand.
- Large speculative players reduce their net selling position for the second week in a row, and have been doing this intermittently since the end of December. The net position fell to the levels of the beginning of March, close to the lowest since the end of July last year.
Small speculators (NONREPORTABLE POSITIONS) reduced the net position to buy cryptocurrency Bitcoin contracts by 0.27 thousand contracts to 1.68 thousand. Small speculators also reduced the net position to buy for the second week in a row. Hedgers (COMMERCIAL) reduced the net position for the purchase of bitcoin contracts by 0.08 thousand contracts to 0.25 thousand. Hedger operators also cut their net buy position for the second week in a row.
Open interest decreased by 0.37 thousand contracts to 8.66 thousand.
The bearish index of large speculators (the ratio of the number of contracts for sale to the number of contracts for purchase) remained unchanged for the week, remaining at 1.44.
Summary: COT reports on cryptocurrency Bitcoin reflect the growth of bullish sentiment among major speculators. Large funds for the second week curtailed sales and purchases, which led to a reduction in the net position for a decrease in BTC by 15%. At the same time, the net position approached the levels close to the minimum for the last 9 months. The continuation of this trend may contribute to the growth of the cryptocurrency.
The number of large buyers decreased by 12 to 39 during the week. At the same time, the number of large sellers decreased by 4, to 30. Buyers took profits and sellers took losses during the corrective decline of the market.
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.
Hedgers continued to reduce a small net position aimed at reducing bitcoin. Among hedgers who trade more long-term, bullish sentiment on cryptocurrency continues to grow (as well as among large speculators).
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.