For some reason the lengths are fromAt Bitfinex, they are the dominant operations. Almost that 90% of all margin traders trade with ETH for a long time on the stock exchange.
The overwhelming number of lengths by the ETH make some speculate that we might see a “length squeeze” soon, or maybe these dealers know something the rest of us don’t know. There is confusion as to why Bitfinex margin trading is so predominantly long.
Bitfinex dealers are betting on profits
At the time of writing, almost 90% of margin traders are at Bitfinex, for a total volume of approximately $ 314 million. BitMEX is only 47% long, but the volume is many times smaller than in Bitfinex.
According to lowstrife (@strife), approximately 1.975 million ETH were long and only had a margin at Bitfinex. This is around 1.8% of the circulation offer.
1,975 million ETH (1.8% of the total circulation offer) are now marginal on Bitfinex. Bitfinex only.
+ 250k have just been filled in the last 4 hours. pic.twitter.com/xOOrxNR8gw
– Lowstrife (@lowstrife) April 10, 2020
These lengths have been maintained since then despite the relatively weak price movement(BTC) continues to bleed. Most BTC margin requests, 61% at the time of writing, are also long.
Although the S&P 500 has risen 1.5% today, Bitcoin has not followed. The leading cryptocurrency has fallen below the $ 7,000 price and is now down 5.25%. Traders may expect BTC and ETH to follow traditional financial markets, but so far this has not happened.
Confusion about what’s coming
The overwhelming number of margins at Bitfinex has caught the attention of traders. Some speculate that ETH has set up a long-term fund. Trading volume fell in March and price activity has been uneven since then, but could bottom out. Still others see this as a trick to reduce margin trading. The macroeconomic outlook remains a concern.
The annualized interest rate for ETH at Coinlend is currently an impressive 197%. The increase could be related to trading long ETH margins on Bitfinex.
Many traders are waiting on the sidelines to see how this develops. There is also speculation that this is a period that will lead to the publication of “Phase 0” of ETH 2.0, which is expected to be launched in July. However, it should be noted that even with the release of “Phase 0”, Ethereum 2.0 will not be fully functional for many years.
Perhaps this is the beginning of Ethereum, which is leading the market for a short time instead of Bitcoin.
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