The main dishes to remember:
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The long margins of Bitfinex dropped by 18%, despite the increase in the price of Bitcoin by 24% in 30 days.
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$ 6.8 billion in long -term positions far exceed the current $ 25 million.
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The positioning of Bitcoin options and BTC entries indicate the confidence of institutional investors.
The price of Bitcoin (BTC) has climbed 23.7% over the past 30 days, but traders on Bitfinex have reduced their long lever -effect positions to more than 18,000 BTC during this period. This wave of profits on the margins has led to speculation that professional traders may not be fully confident in the current price level of $ 104,000.
The long margins of Bitfinex fell to 65,889 BTC of 80,387 BTC between April 16 and May 16. This quarter work marks a reversal of the high demand for a bullish margin observed between mid-February and mid-March, a period when the price of Bitcoin fell to $ 82,500 against $ 97,600. The current decrease in long margins is probably a sign of healthy profit rather than a turn towards a downward momentum.
The reasoning behind this decision is not entirely clear, because the leap of bitcoin above $ 100,000 occurred on May 8, about three weeks after the margin peak. However, it would be wrong to suggest that Bitfinex whales have adopted a lower perspective. Their margin is now completely total of $ 6.8 billion, while margin shorts are only 25 million dollars, which shows a major gap between upward and lowering positions.
This difference is mainly due to the low annual interest rate of 0.7% Bitfinex for margins trading. On the other hand, those who use the leverage for term contracts on Bitcoin at 90 days pay an annualized premium of 6.3%. This gap creates arbitration opportunities.
For example, you can open Bitcoin which aspires to the margin and simultaneously sell an equivalent position in the term contracts on BTC to benefit from the rate difference. Margin traders also tend to have longer deadlines and higher risk tolerance than average investors, so their position changes are less affected by short -term price movements.
Whales imperturbable by a resistance of $ 105,000 while the FNB BTC lead optimism
To exclude factors limited to the margins, it is useful to examine Bitcoin options. If traders expect a correction, the demand for put options (Vende) increases, pushing the SKEW by 25% above 6%. In bullish periods, this metric generally drops below -6%.
Current -6% options Delta Skew show confidence in the Bitcoin price, even if the data in the past two weeks have gone from neutral to slightly bullish. This indicates that whales and market manufacturers are not particularly concerned about repeated failures to exceed the barrier of $ 105,000.
In relation: Evolutionary view of Bitcoin Traders of the BTC role in each $ 100,000 box portfolio
Part of the increased optimism, despite a drop in the demand for optimistic positions with leverage, comes from net entries of $ 2.4 billion to Bitcoin Funds (ETF) Bitcoin exchangers between May 1 and May 15. Consequently, the drop in long bitcoin margin does not mean that institutional traders become a work, especially when you consider the markets of BTCOIN options.
Although this data does not reveal if Bitcoin is closer to the break of $ 105,000, the fact that there are $ 6.8 billion in leverage clearly shows that professional traders remain very optimistic about the price prospects.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
