What does CFTC COT Report mean for Crypto Market?


The US Commodity Futures Trading Commission (CFTC) has released the Commitments of Traders (COT) report. What does CFTC COT Report mean for cryptocurrency market?

28 August, AtoZ Markets It appears that bearish positions for non-commercial Bitcoin futures contracts are dropping. The latest Commitments of Traders (COT) report from the US Commodity Futures Trading Commission (CFTC) signals exactly that.

CFTC COT Report

The report indicated that for the week ending August 21, the net position on the Bitcoin futures has fallen by 1,266. Short positions dropped by 210 contracts to 3,426 in comparison to the previous week. As for the status of the long positions, they rose by 56 contracts to 2,160.

As it is shown by the total negative result, the market is still net short overall, yet -1266 is a significant change from the -1926 recorded on June 5th. The new data seems to reveal a trend away from the bearish market sentiment. This is reportedly fuelled by a strong price performance on Bitcoin spot markets.

Cryptocurrency analyst Brian Kelly has referred to the data from CME exchange, which suggested that Bitcoin futures market overall is indicating increased demand and heightened maturity. He has been quoted as saying:

 “Here’s CME Futures open interest of large holders. [As of] April, you’re starting to see a big increase… about an 85 percent growth rate. If you extrapolate that out, by February 2019, you’re going to have a very robust market here.”

Mr. Kelly has also stated that the likelihood of the US Securities and Exchange Commission (SEC) approving a Bitcoin exchange-traded fund (ETF) would emerge by February 2019. This is based on the expected growth in the Bitcoin derivatives market along with other impactful factors. As Mr. Kelly has noted, even the SEC Bitcoin ETF disapproval orders have not led the market to “sell-off.” This is another sign of market resilience.

What does CFTC COT Report mean for Crypto Market?

As of the moment, Bitcoin is changing hands at $7,023.54, up 4,31% on the day. The price of the leading cryptocurrency has fluctuated within a narrow range on Monday following the data from the futures market. The data has signaled that institutions and investors were no longer betting against the BTC. This appeared as a sign that the worst dip of Bitcoin might be already over.

In his latest video, 7marketz co-founder Yagub Rahimov has shared his outlook concerning the current environment in the cryptocurrency market.

 

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