On October 17, the CFTC announced the latest CME Bitcoin Futures Weekly Report (October 7-October 13). During the statistical period, BTC experienced a surge of approximately US$1,000. During the entire statistical period, There has been almost no deep correction in the market, and a clear upward ladder has been maintained. This weekly report shows the logic of adjusting positions of various accounts during the sharp rise in the market.
The total number of positions (the total number of open positions) in the latest data has risen from 7,511 to 9,353, which almost made up for the entire decline in the previous month. The sharp rise in the market has greatly contributed to the recovery of market participation. With the strong boosting utility, the funds showed obvious signs of returning in the latest statistical cycle.
In terms of sub-data, the large-scale brokers’ long positions have decreased slightly from 703 to 702, basically remaining at a historical high level without any significant adjustments. However, the short positions have been fully liquidated, which is also since May 5 this year. The broker’s account once again appeared with zero short positions, but the last time a similar situation occurred, the long position was only 316, which is far below the level of 702 at the end of the latest statistical period. Therefore, it can be considered that the current large Institutions’ bullish expectations for the market outlook have reached a record high level.
In the latest statistical cycle, the long position of leveraged fund accounts rose from 2,153 to 3,487, and the short position rose from 4,854 to 6,314. Both the long and short positions of leveraged funds reached new highs in nearly six weeks, although no clear orders were made. To adjust positions, but the large increase in positions shows that the participation of such accounts has rebounded rapidly after the market rebounded.
In terms of large holdings, long positions rose from 1604 to 1,713, and short positions rose from 1,747 to 2,063. The adjustment logic of large accounts in the latest statistical cycle is very similar to that of leveraged funds, and both long and short two-way simultaneous increase in a considerable range have been carried out. However, it is worth mentioning that the large account accounts have significantly increased the increase in the short order, and the current advantage of the short position of this type of account has been enlarged.
Therefore, although it is considered that the increase in these two types of accounts is a positive feedback to the market rise, the overall position of the two types of accounts maintains a headroom, indicating that the attitude of these two types of accounts towards the market outlook is not as optimistic as the broker account, or only It is to re-participate in seeking some short-term opportunities in the general environment of the market’s rebound.
In terms of retail holdings, long positions rose from 2,696 to 2,961, and short positions fell from 491 to 486. Although the reduction of retail accounts on short orders is very limited, this type of account is the only account that has a clear net long position adjustment in the latest statistical cycle, considering the two-way adjustment of long and short positions. Of course, it is not surprising for retail accounts to adjust positions in the forward direction when the market fluctuates sharply, so there is no need to over-interpret this.
Extended reading: What is the CFTC position report? What’s the value? How to interpret it?
