Since the beginning of the year, bitcoin (BTC) margin holdings on Bitfinex have surged by over 13,000 BTC, signaling renewed confidence among traders despite the ongoing market downturn.
As BTC’s price struggles, traders on Bitfinex continue their well-known habit of buying the dip, potentially providing a glimmer of hope for bullish investors. Historically, these traders have been adept at identifying market tops and bottoms, adding weight to their latest moves.
Data from Coinglass and TradingView reveal that bitcoin purchases using borrowed funds—essentially leveraged bets on a price rebound—have climbed from 50,773 BTC earlier this month to over 60,000 BTC. This represents a 2% increase in just the past 24 hours alone.
The rising margin long positions indicate growing optimism for bitcoin’s future trajectory, even as the cryptocurrency has plunged more than 20% this month, putting it on pace for its worst monthly performance since June 2022.
Bitfinex traders, predominantly whales or large BTC holders, frequently engage in margin longs to capitalize on market trends. Their historical behavior suggests that they tend to accumulate during downtrends or rangebound conditions, as evidenced in mid-2024.
Looking at a broader five-year perspective, margin longs have consistently increased during price corrections and decreased near market peaks. This trend was notably apparent during the bull runs of 2021 and 2024.
Amid the ongoing market slump, sentiment in the crypto sector has plunged into a state of extreme fear, according to Coinglass’ Crypto Fear & Greed Index. Over the past year, extreme fear has been recorded on only four occasions, whereas greed and extreme greed dominated for over 230 days.
