Bitfinex Traders Bet on Bitcoin Rebound as Market Dips

Bitcoin's (BTC) price has dropped over 20% this month, marking its worst performance since June 2022. Despite the decline, traders on crypto exchange Bitfinex, known for accurately predicting market tops and bottoms, are increasing their long positions, signaling potential optimism for a rebound.

According to Coinglass and TradingView data, margin long positions on Bitfinex have surged from 50,773 BTC to over 60,000 BTC this month, with a 2% rise in the past 24 hours. These positions, which involve borrowing funds to bet on a price increase, reflect growing confidence in Bitcoin’s long-term potential.

Historically, Bitfinex traders—often large BTC holders or “whales”—have strategically accumulated Bitcoin during market downturns and reduced exposure near peaks. This trend was evident during the 2021 and 2024 bull runs. Their buying activity amid Bitcoin’s latest decline aligns with their past behavior of accumulating assets in uncertain markets.

The broader crypto market sentiment remains fragile, with Coinglass’ Crypto Fear & Greed Index indicating “extreme fear.” Over the past year, market sentiment has predominantly leaned toward greed, with over 230 days classified as “greedy” or “extremely greedy.” However, only four days have registered as “extreme fear,” highlighting the rarity of such bearish conditions.

As Bitcoin navigates this downturn, the actions of Bitfinex traders provide hope for a potential recovery. Their consistent history of buying during price slumps and selling at market peaks suggests that BTC’s latest decline may present a buying opportunity for long-term investors.