Bitcoin Traders on Bitfinex Embrace Buying Dips

As bitcoin’s (BTC) price wilts, traders on crypto exchange Bitfinex are living up to their reputation of being dip buyers. This offers some hope to battered crypto bulls given their track record of predicting market peaks and troughs.

The number of bitcoin bought on Bitfinex with borrowed cash—betting that the BTC price will rise—has risen to more than 60,000 BTC, up from 50,773 earlier this month. This figure has jumped 2% in the past 24 hours alone, according to data from Coinglass and TradingView.

This increase in margin long positions signals a vote of confidence in the largest cryptocurrency, which has lost over 20% this month and is on track for its worst monthly performance since June 2022.

Bitfinex traders are mainly whales—holders of large amounts of bitcoin—who engage in margin longs. They are known for accurately signaling bitcoin tops and bottoms, tending to accumulate during downtrends or rangebound markets, as they did in mid-2022.

Over a five-year timeframe, margin longs have consistently increased holdings during price declines and reduced exposure near market peaks. This pattern was observed during the 2021 and 2024 market tops.

As the crypto market tumbles, sentiment is in a state of extreme fear, per Coinglass’ Crypto Fear & Greed Index. Over the past year, the market has seen only four days of extreme fear and has been dominated by greed and extreme greed for over 230 days.