Bitfinex Traders Show Confidence Amid Bitcoin Price Decline
As the price of bitcoin (BTC) continues to decline, traders on the crypto exchange Bitfinex are showcasing their characteristic behavior as dip buyers. This trend provides a glimmer of hope for beleaguered crypto bulls, especially considering their historical ability to accurately forecast market peaks and troughs.
Recent data indicates that the amount of bitcoin acquired on Bitfinex using borrowed funds—an indication of a bullish bet on BTC’s price recovery—has surged to over 60,000 BTC, up from 50,773 BTC earlier this month. Notably, this figure has increased by 2% in just the past 24 hours, based on statistics from Coinglass and TradingView.
The rise in these so-called margin long positions signals a renewed vote of confidence in the largest cryptocurrency, which has experienced a significant downturn, losing more than 20% this month alone. This trajectory puts it on track for its worst monthly performance since June 2022.
Traders on Bitfinex primarily consist of large holders, often referred to as whales, who engage in margin long positions. These traders are particularly renowned for their ability to accurately identify the tops and bottoms of the bitcoin market. Historically, they tend to accumulate more during price declines or sideways market movements, reminiscent of their actions during the middle of last year.
When analyzing a five-year period, it becomes clear that margin longs have consistently increased their holdings during price downturns, while reducing their exposure as markets reach their peaks. This trend was particularly evident during the market tops of 2021 and 2024.
As the broader crypto market experiences significant declines, overall market sentiment is steeped in extreme fear. According to Coinglass’ Crypto Fear & Greed Index, the market has only recorded four days of extreme fear over the past year. In stark contrast, it has been dominated by periods of greed and extreme greed for over 230 days.
