As the price of bitcoin (BTC) continues to decline, traders on the Bitfinex crypto exchange are living up to their reputation as dip buyers. These traders, who are mainly whales or holders of large amounts of bitcoin, have been buying bitcoin with borrowed cash in the hopes that the price will rise and they will make a profit once they repay the loan. In fact, the number of bitcoin bought on Bitfinex with borrowed cash has risen to over 60,000 BTC from 50,773 this month, a 2% increase in the past 24 hours alone.
This increase in margin long positions is seen as a vote of confidence in bitcoin, despite its recent decline of over 20% this month. Bitfinex traders have a track record of accurately predicting market peaks and bottoms, and they tend to accumulate bitcoin during downtrends or rangebound markets. This pattern was observed during the market tops in 2021 and 2024.
The current state of the crypto market sentiment is one of extreme fear, according to Coinglass’ Crypto Fear & Greed Index. Over the past year, the market has experienced only four days of extreme fear, while greed and extreme greed have dominated for over 230 days.
Overall, the increased buying activity on Bitfinex by margin long traders provides some hope to crypto bulls who are looking for signs of a market turnaround. These traders have a history of making accurate predictions and their actions suggest that they believe in the long-term potential of bitcoin.
