Bitfinex Bitcoin longs hit 6-month high — Will BTC price follow?
Leverage long Bitcoin positions at Bitfinex hit a 6-month high, but data shows the bullish sentiment is mostly shared among risk-loving traders.
Bullish Bitcoin (BTC) positions using leverage on the Bitfinex exchange surged to their highest level in nearly six months, reaching 80,333 BTC on March 20—equivalent to $6.92 billion. The 27.5% increase in Bitcoin margin longs since Feb. 20 has fueled speculation that the 12.5% BTC price gain from the $76,700 low on March 11 is driven by leverage and may not be sustainable.
Bitfinex BTC margin longs, BTC. Source: TradingView / Cointelegraph
However, Bitcoin’s price does not always move in tandem with bullish leveraged positions on Bitfinex. For example, in the three weeks ending July 12, 2024, large investors added 13,620 BTC in margin longs, yet Bitcoin’s price fell from $65,500 to $58,000. Similarly, a two-week-long increase of 8,990 BTC in margin longs took place leading into Sept. 11, 2024, and this coincided with a price decline from $60,000.
