By Chris Hollingworth 
Key takeaways:
Bitcoin price rose 23.7% in the past 30 days, while Bitfinex margin longs dropped by 18%.
There is a significant difference between $6.8 billion in long positions and $25 million in shorts on Bitfinex.
Institutional investors are showing confidence in Bitcoin through options positioning and spot BTC inflows.
Bitcoin’s recent price surge of 23.7% over the last month has been accompanied by a notable trend on Bitfinex, where leveraged long positions have decreased by more than 18,000 BTC. Despite the price increase to $104,000, this decline in margin longs suggests that professional traders may have reservations about the current price level.
Between April 16 and May 16, Bitfinex margin longs fell from 80,387 BTC to 65,889 BTC, indicating a shift from the strong bullish sentiment observed in the previous months when Bitcoin experienced a price drop. However, this reduction in long positions is likely a result of profit-taking rather than a bearish sentiment among traders.
The significant gap between the $6.8 billion in long positions and the mere $25 million in shorts on Bitfinex highlights the prevailing bullish stance among whales. This imbalance can be attributed to the favorable 0.7% annual interest rate for margin trading on Bitfinex, creating arbitrage opportunities for traders.
Despite the resistance at $105,000, institutional investors seem undeterred, as evidenced by the confidence exhibited in Bitcoin options markets. The current -6% options delta skew indicates a positive outlook on Bitcoin’s price trajectory, further supported by the $2.4 billion net inflows to US spot Bitcoin ETFs in early May.
While the decrease in margin longs may raise questions about market sentiment, the overall data suggests that professional traders remain optimistic about Bitcoin’s future price movements. This sentiment is underpinned by the substantial long positions held by whales and the confidence displayed in both options markets and ETF inflows.
It is important to note that this article serves as general information and should not be construed as legal or investment advice. The opinions expressed are solely those of the author and may not necessarily reflect the views of Cointelegraph.
