CFTC Bitcoin Position Weekly Report: Large Institutions Show Clear Bullish Sentiment, While Retail Investors Have a Short-Term Bearish Attitude
The narrow range of the market has led to hesitation from both long and short positions, which in turn has cooled the previously rising enthusiasm among market participants.Source: ForesightNews
The latest CFTC CME Bitcoin Position Report published on July 8 (covering June 28 - July 4) shows that the total open interest of Bitcoin standard contracts fell from 18829 to 17008. This value has decreased after reaching a historical high in the previous reporting period. The narrow range of market fluctuations has led to hesitation from both long and short positions, resulting in a cooling of the previously heated market participation.
The largest dealer accounts saw their long positions rise slightly from 536 to 556, while short positions fell from 4473 to 4081. These accounts made a long overdue net long adjustment in the latest reporting period, reversing the net short stance maintained in previous periods. Large institutions did not continue their strategy of increasing short positions in the latest reporting period, which saw the market stabilize. Their behavior of shorting against the trend during a rapid rise, and then making slight net long adjustments as the market's upward momentum slowed, is intriguing. For large institutions, this position adjustment seems somewhat "lagging" and "confused," and more information will be needed in the next reporting period for further observation before drawing conclusions.
Asset management institutions increased their long positions from 7603 to 8311, marking four consecutive weeks of growth and reaching a historical high. Short positions remained unchanged at 70, continuing to stay at a near 19-week low. These institutions made a clear net long adjustment in the latest reporting period, maintaining their bullish outlook. Currently, the overall positions are almost in an absolute bullish state.
Leveraged funds saw their long positions decrease from 6145 to 5356, while short positions rose further from 10411 to 10464, setting a new historical high. These accounts made a clear net short adjustment in the latest reporting period. After aggressively increasing their positions in the previous reporting period, their continued increase in short positions clearly expresses a pessimistic outlook for the market. This is a more directional expression of their stance following significant position increases, making leveraged funds the main short force in the short term.
Large accounts saw their long positions decrease from 324 to 321, while short positions rose from 758 to 873. These accounts made a clear net short adjustment in the latest reporting period, showing a more defined bearish stance compared to dealer accounts.
Retail investors saw their long positions decrease from 1780 to 1568, while short positions fell from 676 to 624. Retail investors made simultaneous reductions in both long and short positions in the latest reporting period, with a larger reduction in long positions, indicating a bearish judgment during the market's consolidation phase.
The total open interest of Bitcoin micro contracts fell from 10700 to 9138.
Dealer accounts saw their long positions decrease from 223 to 194, while short positions fell from 4130 to 2170. These accounts made simultaneous reductions in both long and short positions in micro contracts, similar to the ambiguous directional choices made in standard contracts.
Asset management institution accounts saw their long positions rise from 876 to 888, while short positions fell from 26 to 22. These institutions made a clear net long adjustment in micro contracts, further solidifying their bullish stance.
Leveraged funds saw their long positions decrease from 2633 to 2093, while short positions rose from 3054 to 4585. Leveraged funds made a clear net short adjustment in the latest reporting period, consistent with their choices in standard contracts, reinforcing their bearish outlook.
Large accounts saw their long positions rise from 2530 to 2536, while short positions fell from 1809 to 1249. These accounts made a slight net long adjustment in the latest reporting period, with the adjustment being small and contrary to their choices in standard contracts. This indicates a conservative adjustment in the short term, with micro contracts serving as a risk hedging operation.
Retail investors saw their long positions decrease from 3736 to 3182, while short positions fell from 979 to 867.
