Bitcoin longs on Bitfinex have tripled since April, up to 84,000 BTC last month and now up again to 93,500.
That’s worth some $2.6 billion at the current price, with the vast majority of these longs probably underwater.
Bitcoin’s price was $40,000 and it even neared $50,000 at one point in April. It was in the low to mid $30,000s in May. It’s now at $27,000.
So a lot of these longs are in red, but still instead of coming down, they’re going up. Do Bitfinex bitcoiners know something we don’t?
Maybe. At this sort of price level you’d expect some sort of a bitcoin bounce. You would have expected that in May, but the Luna collapse maybe delayed it.
These could just be hedges, where they’re short somewhere else and are trying to fool on Bitfinex by pretending they bull.
Or these are very long term bets, 2-3 years, with huge margin buffers to maybe $5k BTC or less.
And of course one can’t entirely discount the possibility Bitfinex is just pretending anyone is long as they obviously can say whatever they want in their feed, it’s not like they’re audited, but that would be very risky as there would be consequences if it was established they’re misleading.
In the absence of any evidence, these are either hedges or people hoping for a bounce, but the scale of total longs is notable.
We haven’t noticed any maxis longing en mass here, so it might be just one whale or maybe even dumb money trapped.
Whatever it is, it’s at all time high and significantly so with the previous all time high being in July 2021 at 54,000 bitcoin.
Bitcoin’s price did rise back then to reach a new all time high. This time though bitcoin has been falling with it to be seen whether that will change in the short term.