The number of Bitcoin (BTC) longs on Bitfinex cryptocurrency exchange has increased to over 74% in less than two weeks and is currently nearing a new all-time high.
Bitcoin (BTC) Longs on Bitfinex Nearing New ATH
Crypto traders are hoping for a bullish market sentiment given the number of Bitcoin (BTC) longs on Bitfinex cryptocurrency exchange approaching a new all-time high.
With Bitfinex being one of the largest cryptocurrency exchanges in the world, serving in over 52 countries, its dataset can be used as a proxy for the broader market sentiment.
Interestingly, Bitfinex trader had a bearish price prediction for the world’s largest cryptocurrency with the number of Bitcoin shorts going up by over 368% on the platform, just three days prior to the massive crypto market wipeout.
When a trader longs Bitcoin, it essentially means that they open a bet on the fact that the price of Bitcoin will increase. Given the conditional terms, if the price of Bitcoin does increase they will receive profit, and if it drops they will face losses.
To fund the longs, traders need to use some of their own funds and some from the borrowed funds. By pooling these funds together they could buy Bitcoin.
Once Bitcoin is brought the aim is to sell the cryptocurrency one bought with more than they initially bought for. Once the trade has closed they will have to pay back the borrowed funds in full, regardless of the trade outcome.
Bitcoin Showing Signs of Recovery
Bitcoin’s volatility continued this weekend with a sudden drop to $33,500 followed by a sharp recovery by a few thousand dollars.
Just a few days ago, the cryptocurrency took a few swings at overcoming $40,000, but to no avail so far. The latest downwards swing came on May 27th when the cryptocurrency dropped down to $35,000 in the following hours.
Nevertheless, the bulls stepped up and rapidly pushed the cryptocurrency upwards at this point. As of now, Bitcoin has recovered more than $2,000 and currently sits around $37,000.