Bitfinex Bitcoin longs total $6.8B while shorts stand at $25M — Time for BTC to rally?
Bitcoin (BTC) price increased by 23.7% over the past 30 days, reaching $104,000. Traders on Bitfinex reduced leveraged long positions by over 18,000 BTC, dropping from 80,387 BTC to 65,889 BTC between April 16 and May 16. This profit-taking indicates a cautious sentiment among professional traders rather than outright bearishness. Current margin longs total $6.8 billion, with only $25 million in margin shorts, highlighting a significant bullish stance. The low 0.7% annual interest rate for margin trading creates arbitrage opportunities compared to the 6.3% premium for 90-day Bitcoin futures. The options market shows a -6% delta skew, indicating confidence in Bitcoin's price despite challenges breaking the $105,000 resistance. Additionally, $2.4 billion net inflows into US spot Bitcoin ETFs between May 1 and May 15 contribute to ongoing optimism among institutional traders.
