In spite of Bitcoin’s (Btc) reached the price Highest level in more than three weeksBitfinex entrepreneurs have reduced their leveraged long (bullish) position in margin contracts more than $ 100 million between April 17 and April 19.
This reduction has led to speculation that bitcoin whales may expect a price correction or, somehow, are not confident of further short-term acquired. Let’s see closer if this may happen.
Bitfinex bitcoin whales remains bullish
Bitcoin climbed above $ 86,000 on April 21 after US President Donald Trump explicitly discussed the Possibility of changing Federal Reserve Chair Jerome Powell. Trump criticized Powell for not quick action to ease the financial policy.
In addition, investors are increasingly off the risk due to concerns about a recession as global trade war increases, especially given the ongoing uncertainty in US-China relationship.
The righteousness behind this income in the margin market is noticeable especially, as the price of bitcoin has remained below $ 90,000 since early March, motivating some investors to ask the possibility of a sustainable degeneration from Traditional markets.
The S&P 500 index futures trade 1.1% below their price closure on April 17, and increasing political tensions in the US further eliminate investors’ feelings.
Bitcoin’s margin wants Bitfinex to stand 80,400 BTC between April 10 and April 17, indicating strong confidence from bullish businessmen as this level is close to a seven -month height. However, although BTC prices have earned the $ 83,000 level, entrepreneurs have chosen to reduce their leveraged bullish position by 1,250 BTC, which is equivalent to $ 106 million.
Historically, Bitfinex entrepreneurs are known for the rapid opening or closing of the large Margin position of Bitcoin, indicating that whales and large arbitrations of desks are usually behind these movements.
However, it is not accurately suggested that the Bitfinex whales move to a bearish bearish, considering their margin longs currently 79,136 BTC, worth $ 6.86 billion, while margin shorts only reached 326 BTC.
Related: Bitcoin Whales absorbs 300% of the new Mined BTC supply – is $ 100k next?
The significant difference between bullish and bearish positions can be attributed to the noticeable low 2% annual interest rate. In comparison, entrepreneurs who use two months BTC futures are currently paying 5.7% annual premium.
Creates the difference —It’s opportunities for arbitration.
BTC does not often move on changes in Bitfinex action
Moreover, the price of Bitcoin is not always associated directly with changes in leveraged positions in Bitfinex. For example, at the end of the end of March 10, whales increased their margin to 13,454 BTC, but the price of Bitcoin refused from $ 95,930 to $ 67,076 at the same time.
Similarly, the Margin Longs dropped 11,047 BTC in two weeks ending December 16, 2024, as the price of Bitcoin increased from $ 96,200 to $ 106,400.
However, these sophisticated investors have shown strong timing in the market in longer terms. For example, the price of Bitcoin eventually dropped below $ 58,000 on December 23, 2024, after reducing margin-long positions of 26% over the last 30 days.
This pattern suggests that these merchants are usually highly profitable but also shows a significant higher risk of tolerance and patience compared to the average investor.
Ultimately, a $ 106-million reduction in BTC Margin Longs is not enough evidence to claim that professional traders are becoming bearish.
As cointelegraph reportedOnchain data suggests bitcoin whales have grown in number throughout March and April despite the fall of the price, suggesting accumulation.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
