Since the beginning of the year, the volume of Bitcoin purchased using margin on Bitfinex has increased by more than 13,000 BTC.
Updated Feb 28, 2025 12:55 UTC Published Feb 28, 2025 10:31 UTC
What you need to know:
- Long margin Bitcoin positions on Bitfinex have grown to over 60,000 BTC while the BTC price has fallen below $80,000.
- Since the beginning of the year, the position has increased by more than 13,000 BTC.
As the price of Bitcoin (BTC) declines, traders on cryptocurrency platform Bitfinex are living up to their reputation as dip buyers, giving hope to disillusioned crypto bulls based on their experience in predicting market peaks and troughs.
The amount of bitcoin purchased on Bitfinex using borrowed funds, betting on the price of BTC to rise and expecting to profit once the loan is repaid, has risen to more than 60,000 BTC from 50,773 this month. That figure is up 2% in the last 24 hours, according to data from Coinglass and TradingView.
The increase in so-called margin long positions is a sign of confidence in the largest cryptocurrency, which has lost more than 20% this month, putting it on track for its worst monthly result since June 2022.
Bitfinex traders are mostly whales — or large holders of bitcoin — who actively use long margin positions. They are renowned for their ability to accurately predict bitcoin highs and lows, and tend to accumulate assets during periods of decline or sideways movement, as was seen in the middle of last year.
Over the five-year period, long margin positions consistently increased their assets during market declines and reduced their exposure near market peaks. This trend was particularly noticeable during the market peaks in 2021 and 2024.
According to the Coinglass Cryptocurrency Fear and Greed Index, although the crypto market is down, sentiment is in a state of extreme fear. Over the past year, the market has experienced only four days of extreme fear. For more than 230 days, it has been controlled by greed and extreme greed.
