Rising margin positions signal persistent confidence despite BTC’s ongoing correction and recent 26% decline
Bitcoin traders on Bitfinex are showing renewed optimism as margin longs climbed 42% over the past three months, even while BTC has fallen roughly 26% from $126,500 in October to near $81,000. This pattern underscores a tendency among sophisticated investors to double down on market dips, reflecting persistent accumulation during periods of weakness.
Margin Longs Reach Historically Significant Levels
TradingView data shows that the current long position on Bitfinex has reached 70,714 BTC, up from 50,000 BTC at the start of August. Notably, this is the third time since September 2024 that margin longs have approached the 70,000 BTC level — and both previous instances coincided with major market bottoms.
BitXJournal crypto market analyst noted that “Bitfinex whale activity has historically signaled key reversals, making the current buildup a potential early indicator of a market floor.”
The first prior spike occurred in August 2024, amid the yen carry trade unwind, when Bitcoin fell toward $49,000. Long positions were later reduced as BTC rebounded to $100,000 after the U.S. election in November 2024. The second instance was in April 2025 during the tariff turmoil, when BTC dropped to $76,000 before rallying to $120,000 in June.
Accumulation Continues Despite Weakness
Despite six down weeks out of the past seven, traders continued to leverage borrowed funds to accumulate Bitcoin. The persistent growth of margin longs signals that investor confidence remains resilient, even as BTC approaches its weakest monthly performance since June 2022.
Over the past five years, this Bitfinex whale has consistently timed key market reversals, gradually reducing long exposure during rallies while accumulating during downturns.
The 42% jump in Bitfinex margin longs demonstrates that many traders view BTC dips as buying opportunities, despite broader market volatility. Historical patterns suggest that large whale activity around the 70,000 BTC mark has aligned with market bottoms, highlighting the potential for a reversal or stabilization as traders double down on Bitcoin exposure.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.