On the 13th of June, the Bitfinex exchange saw a surge in the volume of Bitcoin buys. One trader, in particular, opened a sizeable long position to absorb the selling pressure of BTC.
Bitfinex’s BTC Trades
Bitcoin’s lending rate for long positions on the exchange is currently at 0.062% and 0% for short positions. Also, more than 107,000 BTC are in long positions on the centralized exchange. The short positions are far lesser, a little above 3000 BTC. Short trades are declining, although the current price of Bitcoin is yet to reflect that.
Bitfinex is currently using margin loans to support open Bitcoin positions. Margin trades are risky, and traders can be liquidated if market conditions turn sour. However, the exchange has been recently accused of backing margin positions with more collateral. This can help traders escape liquidation and salvage huge sums if the price of Bitcoin eventually recovers well. On the other hand, if BTC’s price keeps tumbling, traders and lenders risk losing it all.
Bitcoin – Up or Down From Here?
In the last 24 hours, Bitcoin fell from around $24,000 to $21,000. The leading cryptocurrency has bounced slightly from its daily low. At the moment, Bitcoin is valued at $22,600, with a 7% decrease in the last 24 hours. Bitcoin’s fear and greed indicator reveals that investors are experiencing extreme fear.
At the moment, big investors like MicroStrategy and Grayscale are on the verge of losing billions of dollars if the market crumbles further. However, margin loans can be a backup plan to sustain these colossal Bitcoin positions.
The crash in Bitcoin’s price has also taken a toll on other assets, with Ethereum and other DeFi tokens also feeling the heat. The general crypto market capitalization is currently less than a trillion-dollar, the lowest it has been in over 18 months. It is yet to be known if the multiple long positions on Bitfinex and other large exchanges will push prices higher.
