Bitcoin (BTC) prices have reached the highest level for three weeks, but Bitfinex’s traders have reduced the leverage long positions by more than $ 100 million in the margin contract between April 17 and April 19.
This decrease led to speculation that Bitcoin whales could expect price modifications or at least be sure of short -term profit. Let’s take a closer look at it.
Bitfinex Bitcoin Whales are still optimistic
Bitcoin increased to more than $ 86,000 on April 21, after US President Donald Trump publicly discussed the possibility of replacing Jerome Powell. Trump criticized Powell that he did not act quickly to alleviate monetary policy.
In addition, considering the continuous uncertainty of the US China relations, investors are increasingly risk due to concerns about the economic downturn as the global trade war expands.
Since the price of Bitcoin has been maintained at less than $ 90,000 since early March, the profits of this profit margin market are particularly noteworthy.
The S & P 500 index futures were 1.1% lower than the closing price on April 17, and the increase in political tensions in the United States further eroses investor sentiment.
Bitfinex’s Bitcoin Margin Longs stood flat on 80,400 BTC between April 10 and April 17, and this level is close to seven months, indicating strong trust of strong merchants. However, even if the BTC price collects $ 83,000, the traders have chosen to reduce the strong position used as 1,250 BTC.
Historically, the Bitfinex trader is known to quickly open or close a significant Bitcoin margin position, and that whales and large arbitrage desks are generally behind this movement.
Nevertheless, it is not accurate to suggest that the Bitfinex whale has changed to a weakness, given that the Bitfinex whale is currently $ 68.6 billion in margins of 79,136 BTCs, while the margin paragraph is only 326 BTC.
relevant: Bitcoin whales absorb 300%of the newly mined BTC supply. Is it $ 100k next?
An important difference in strength and weakness may be due to the low interest rate of 2% of the platform. In comparison, traders who use BTC futures for two months now pay an annual premium of 5.7%.
This difference creates an opportunity for arbitrage because it opens Bitcoin for a long time in the margin market and can capture the difference by selling equal locations to BTC futures.
BTC often does not go to Bitfinex leverage change
In addition, the price of Bitcoin is not directly related to the change in the leverage position of Bitfinex. For example, for two weeks on March 10, whales have always made margins to 13,454 BTC, but the price of Bitcoin has dropped from $ 95,930 to $ 67,076 over the same period.
Similarly, the margin long decreased 11,047 BTC during the two weeks ending on December 16, 2024, while the price of Bitcoin rose from $ 96,200 to $ 106,400.
But these sophisticated investors have shown a strong market time in the long run. For example, the price of Bitcoin fell to less than $ 58,000 in December 23, 2024, and the margin length position has already fallen 26% over 30 days.
This pattern shows that these traders are generally profitable, but have a high risk -to -tolerance error and patience than the average investor.
Ultimately, the $ 116 million reduction in the BTC margin long is not enough evidence to claim that a professional trader is weak.
As reported by Cointelegraph, onChain data suggests that Bitcoin Whales are accumulated despite price slumps throughout March and April.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.