Bitcoin Buyers on Bitfinex Ramp Up Borrowing as BTC Price Declines Sharply.

Bitfinex Traders Boost Margin Longs as Bitcoin Price Declines

Since the beginning of the year, Bitcoin (BTC) holdings acquired on margin at Bitfinex have surged by over 13,000 BTC.

As Bitcoin’s price slides, traders on Bitfinex are once again living up to their reputation as aggressive dip buyers, providing a glimmer of hope for crypto bulls. These traders have a history of accurately signaling market tops and bottoms, making their activity a key indicator of potential trend reversals.

The amount of Bitcoin purchased on Bitfinex using borrowed funds—a leveraged bet that BTC prices will rebound—has climbed from 50,773 BTC to over 60,000 BTC this month, reflecting a 2% increase in the past 24 hours alone, according to Coinglass and TradingView data.

This rise in margin long positions suggests renewed confidence in Bitcoin, despite its 20% decline this month, putting it on track for its worst monthly performance since June 2022.

Bitfinex traders, primarily large Bitcoin holders or “whales,” have a history of using margin longs to time market shifts. They tend to accumulate during market downturns or consolidation phases, as seen in mid-2024.

A broader analysis of margin long activity over the past five years reveals a consistent pattern—positions tend to increase during price dips and contract near market tops. This trend was particularly noticeable during the major peaks of 2021 and 2024.

Meanwhile, overall crypto market sentiment has deteriorated sharply, with Coinglass’ Crypto Fear & Greed Index now signaling extreme fear. In the past year, the market has experienced just four days in extreme fear territory, in contrast to over 230 days dominated by greed and extreme greed.