Main takeout:
Bitcoin prices rose 24% in 30 days, but Bitfinex Margin Long decreased 18%.
Currently, $ 6.8 billion in longer than $ 25 million shorts.
Bitcoin option positioning and spot BTC inflow refers to the trust of institutional investors.
Bitcoin (BTC) prices have risen by 23.7% over the last 30 days, but Bitfinex traders have reduced leverage of more than 18,000 BTCs over this period. The waves of profits that benefit from this margin market speculated that professional traders may not be fully confident about the price of $ 104,000.
Bitfinex Margin Longs has fallen from 80,387 BTC to 65,889 BTC between April 16 and May 16, which is reversed from the strong margin demand of $ 97,600 to $ 82,500 between mid -February and mid -February. The current decline in margin long is not a turn for a weak momentum, but a sign of healthy benefits.
The reasoning of this movement is not completely clear because it has exceeded $ 100,000 on May 8, about $ 100,000 after the long peak. Nevertheless, it is wrong to suggest that the Bitfinex whale has adopted a weak view. Their margins are currently $ 6.8 billion and margin shorts are only $ 25 million, showing the main difference between the strong and weak positions.
This difference is because the annual interest rate for Bitfinex’s margin transactions is 0.7%. In contrast, people who use leverage for 90 -day bitcoin gifts pay 6.3%of premiums per year. This gap creates arbitrage opportunities.
For example, you can open the Bitcoin Longs margin and at the same time sell the equal location at BTC FUTURES to get profits from the rate difference. Margin traders also tend to be longer and higher than the average investor, so position changes reduce short -term price movement.
As the BTC ETF causes optimism, whales do not fall into a $ 105,000 resistance.
It is useful to look at the bitcoin options to exclude the limited factors of the margin market. If the trader predicts modifications, the demand for the PUT option increases, pushing 25% more than 6% of the delta. In an optimistic period, this metrics are generally less than -6%.
Despite the fact that data in the last two weeks has been slightly strong in neutral, the current -6% option DELTA SKEW shows trust in bitcoin prices. This indicates that whales and market manufacturers are particularly concerned about repeated failures than $ 105,000 barriers.
relevant: Bitcoin Traders evolves to the role of BTC in all portfolios for $ 100K support $ 100K support.
Some of the increased optimism theories have not come from considering the BTC option market, especially when the institutional trader is weak, due to the net inflow of $ 2.4 billion in the Bitcoin exchange trading fund (ETF) between May 1 and May 15, despite its low demand for useful positions.
This data does not reveal whether Bitcoin can break more than $ 105,000, but the fact that there are $ 6.8 billion in leverage margin for a long time shows that a professional trader is very optimistic about price prospects.
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.