Bitfinex Bitcoin wants a total of $ 6.8B while the shorts stand for $ 25m – time for BTC to rally?

Key Takeaways:

• The Bitfinex Margin Longs fell 18%, despite the rising price of bitcoin 24% to 30 days.

• $ 6.8 billion in long positions more than weighing current $ 25 million in shorts.

• The positioning of Bitcoin and BTC inflows spot options points to confidence from institution investors.

Bitcoin (Btc) Price went up 23.7% over the past 30 days, yet Bitfinex entrepreneurs have cut off their long positions of over 18,000 BTC at this time. This wave of income acquisition in margin markets has led to speculation that professional traders may not be completely confident at the current price level of $ 104,000.

The Bitfinex Margin Longs dropped from 80,387 BTC to 65,889 BTC between April 16 and May 16. This change marks an upside down from the strong demand margin seen between the mid -February and mid -March, a period of Bitcoin price drop from $ 97,600 to $ 82,500. The current decrease of margin longs is probably a sign of healthy income extraction rather than a turn towards the bearish momentum.

The reasoning behind this move was not completely clear, as the Jump of Bitcoin above $ 100,000 took place on May 8, about three weeks after the margin sank. However, it is wrong to suggest that the whales of Bitfinex have adopted a perspective. Their margin now holds a total of $ 6.8 billion, while Margin shorts Standing at just $ 25 million, showing a major gap between bullish and bearish positions.

This difference is mainly due to the low 0.7% annual Bitfinex interest rate for margin trading. Conversely, leverage users for 90-day Bitcoin futures is paying a 6.3% annual premium. This space creates arbitration opportunities.

For example, one can open Bitcoin Longs to the margin and simultaneously sell an equivalent position in BTC futures to benefit from Difference rate. Margin merchants tend to have longer time frames and higher risk of tolerance than the average investor, so position changes are less affected by short -term price movements.

Whales do not guilty $ 105,000 resistance while BTC ETFS is driving optimism

To rule out factors limited to margin markets, it is worth looking Bitcoin options. If merchants expect a correction, the placement options (sell) are rising, pushing a 25% delta skew above 6%. During bullish periods, this measure usually decreases below -6%.

Current -6% Delta Skew options show confidence in the price of bitcoin, even though data over the past two weeks ranges from neutral to slightly bullish. This indicates that the whales and manufacturers of the market are not particularly concerned about repeating failures that break above the above $ 105,000 barrier.

Related: The emerging view of Bitcoin BTC’s Bitcoin Traders in each portfolio Bolsters $ 100k support

Some of the increasing optimism, despite lower demand for leveraged bullish positions, came from $ 2.4 billion net inflows In the US spot bitcoin exchange-traded funds (ETFs) between May 1 and May 15. Therefore, falling into the Bitcoin margin longs does not mean institutional entrepreneurs become bearish, especially considering BTC options markets.

Although this data will not reveal if Bitcoin is closer to destroying the above $ 105,000, the fact that there is $ 6.8 billion in leveraged margin clearly shows that professional traders remain highly optimistic about the price perspective.

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.