According to the COT (Commitments of Traders) reports provided by the Commodity Futures Trading Commission (CFTC) – for the week ending last Tuesday:
Large speculators (NON-COMMERCIAL) have reduced the net position for the sale of contracts for bitcoins by 0.14 thousand contracts to 0.22 thousand. Large speculative players are cutting the net position for sale for the third consecutive week. Net position has become minimal since April 10.
The small speculators (NONREPORTABLE POSITIONS) reduced the net position for the purchase of contracts for bitcoins by 0.15 thousand contracts to 0.30 thousand. Small speculators reduce the net position for purchasing also for the third week in a row.
Hedgers (COMMERCIAL), which usually trade against the main trend, reduced the net position for sale by 8 contracts to 77.
Open interest grew by 0.25 thousand contracts to 2.98 thousand contracts.
The bear index of large speculators (the ratio of the number of contracts for sale to the number of contracts for purchase) declined by 0.13 to 1.10 in the week.
Summary: COT reports on bitcoin reflect the growth of bullish sentiment among large speculators, which have already reduced the net position for the reduction of bitcoin for the third week. In the last week, large speculators increased both purchases of BTC (by 36%) and sales (by 22%), which led to a decrease in net position to reduce BTC by 39%. The net position has become minimal since April, since the publication of reports with CME. Continuation of this trend can contribute to the growth of the cryptocurrency.
Small speculators in the last week increased sales (by 16%) and reduced purchases (by 12%). Among them, there was a noticeable growth in bearish sentiment. But small speculators usually do not have a significant impact on the market.
In general, the situation can be characterized as follows: small speculators began to panic, which was taken advantage of by the large funds that bought part of their contracts from them. The market saw an increase in the interest of large funds in the BTC trade: the number of large bidders increased by 4 to 37.
Note: COT reports are fundamental and are used mainly for medium and long-term trading. Large speculators, NON-COMMERCIAL (banks, investment funds) trade usually on a trend. Small speculators, NONREPORTABLE POSITIONS – usually do not have much influence on the market. Hedgers, COMMERCIAL (operators, large companies) usually trade against the trend. Net position is the difference between the number of contracts for buying and selling. Open interest is the sum of all open positions in the market.