According to COT (Commitments of Traders) reports provided by the Commodity Futures Trading Commission (CFTC) – for the week ending last Tuesday:
Large speculators (NON-COMMERCIAL) increased the net position for the sale of Bitcoin contracts by 0.72 thousand contracts to 2.67 thousand. Large speculative players are increasing the net position for selling the second week after having reduced it for 5 weeks out of the last 7. The net position continued to rise from the lowest levels since July 21 last year, becoming the highest in almost a month.
Small speculators (NONREPORTABLE POSITIONS) increased their net buy position for bitcoin contracts by 0.56 thousand contracts to 2.35 thousand. Small speculators are also building up their net buy position for the second week in a row.
Hedgers (COMMERCIAL) have increased the net position for buying Bitcoin contracts by 0.16 thousand contracts to 0.32 thousand. Hedgers-operators are increasing their net position for buying 2 weeks out of the last 3.
Open interest grew by 0.61 thousand contracts to 9.95 thousand.
The bearish index of large speculators (the ratio of the number of sell contracts to the number of buy contracts) increased over the week by 0.16 to 1.56.
Summary: Bitcoin COT data reflects a noticeable rise in bearish sentiment among large speculators. Large funds were actively increasing sales, which led to an increase in the net position for a decrease in BTC by 37% over the week. At the same time, the net position continued to grow from the minimum levels for the last 8 months. The continuation of this trend may contribute to the decline in cryptocurrency
Small speculators have been increasing their purchases in the last week. Bullish sentiment continues to grow among small speculators, but this group of traders usually does not have a significant impact on the market.
Hedgers, after a week’s break, resumed building up their net position aimed at reducing bitcoin. Longer-term hedgers have seen an increase in bearish sentiment for the cryptocurrency.
Note: COT reporting data is fundamental and is used primarily for medium to long term trading. Large speculators, NON-COMMERCIAL (banks, investment funds) usually trade with 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.
- What is cryptocurrency? Everything a beginner needs to know about coins in one book. Read for free
Market forecasts, analytics and stock news