Large funds, for the first time in history, opened a net position on bitcoin growth
The COT bitcoin report data reflects an increase in bullish sentiment among large speculators. Large funds reduced positions (due to expirations), which led to opening, for the first time in history, a net position for BTC growth. The continuation of this trend may contribute to the growth of the cryptocurrency.
Longer-term hedgers have slightly increased their net position on BTC growth, which updated last week's record levels.
Small speculators continue to reduce their net position on cryptocurrency growth. Bearish sentiment has been growing among them for two months, but this group of traders usually has little impact on the market.
At the same time, the data from the last report might have been distorted by the monthly futures expirations. In this sense, the data from the next report, which will be released in a week, will be more revealing.
COT reports data are fundamental and are used mainly for medium and long term trading. Large speculators, NON-COMMERCIAL (banks, investment funds) usually trade along the trend (blue line). Small speculators, NONREPORTABLE POSITIONS - usually have little influence on the market (red line). HEDGERS, COMMERCIAL (operators, large companies) trade usually against the trend (black line). 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.