While Bitcoin (BTC ($97,947.70)) and altcoins have been moving sideways for a while, the situation has started to become boring for investors. However, Bitfinex said that they expect the rally in Bitcoin to continue, based on a data.
At this point, analysts noted that leveraged long (bullish) positions in Bitcoin reached an impressive $5.1 billion, or 54,595 BTC, reaching the highest level in the last three months.
Bitfinex analysts said the sharp increase in long positions has led to speculation that whales are preparing for a bull rally.
Analysts said one of the main reasons for this increase was the lower borrowing cost of 0.44% per annum.
“Whatever the reasoning behind these long positions, the markets are currently strongly biased towards bullish Bitcoin bets.
The surge in Bitfinex Bitcoin leveraged longs likely reflects arbitrage trades that have little impact on the market, though low lending rates do offer investors the chance to use leverage.
However, investors are currently concerned about macroeconomic conditions, making it difficult for Bitcoin to stay above the current $96,000 level.”
While this sharp increase in Bitfinex has created great excitement in the crypto community, there is also debate about whether this is a sign of an upward trend or a strategic move. Due to the volatility in the Bitcoin and crypto markets, some experts have stated that long positions may be taken as a hedge against potential downside risks.
*This is not investment advice.
Continue Reading: This Data on Bitfinex Reached a Three-Month High! Is It a Bullish Signal for Bitcoin (BTC)?
