For some reason, long ETH on Bitfinex is dominating. Nearly 90% of all margin traders are long altcoin on the exchange.
The amount of dragons is too large for ETH leading to some speculation that we may be about to see a huge long squeeze or maybe these traders know something and the rest don't know. There is no slight confusion as to why Bitfinex's margin trading is so different for margin-long positions.
Trader Bitfinex bet on profits
At the time of writing, nearly 90% of margin traders are currently long on Bitfinex, with a total value of $ 314M. On BitMEX, there is 47% long but the volume is much smaller than Bitfinex.
According to lowstrife, 1,975M ETH has been margin-long on Bitfinex, accounting for about 1.8% of the circulating supply.
1,975 million ETH (1.8% of total circulating supply) is now marginlong on Bitfinex. Just Bitfinex.
+ 250k just got filled over the last 4 hours. pic.twitter.com/xOOrxNR8gw
- lowstrife (@lowstrife) April 10, 2020
These long orders persisted despite relatively anemic price fluctuations as Bitcoin continued to move lower. The majority of BTC call margin, 61% at the time of writing, is also long.
Although the S&P 500 has risen 1.5% today at the time of writing, Bitcoin has not yet followed. BTC has fallen below the $ 7,000 price level and is currently down 2.33%. Perhaps traders are expecting BTC and ETH to follow the traditional financial markets, although, this, so far, has not happened.
Great wall of buying ETH
Earlier this week ETH, like most other cryptocurrencies, witnessed a number of price increases that allowed its price to rise from as low as $ 140 to a high of $ 175.
This movement marks an extension of the momentum that first occurred on March 12 when ETH recovered after moving into territories below $ 100.
In the near term, the reaction to the established support of about $ 160 will provide insight into ETH's current strength, with a strong break below this level is likely to lead to losses. terrible.
However, this may not happen because one or more major investors on Bitfinex have established a large buy wall in the region above $ 150 and lower than $ 160.
Su Zhu, CEO and founder of Three Arbow Capital, talked about this buying wall in a recent tweet, explaining that buyers have absorbed more than 200,000 ETH and still have another 50,000 bids in the order-book.
- Su Zhu (@zhusu) April 10, 2020
Confused about what is to come
The large number of margin-long on Bitfinex has attracted the attention of traders. Some are speculating that ETH has formed a long-term bottom. Trading volume fell sharply in March and price activities have been interrupted since the bottom was reached. However, others are viewing all this as merely a ploy to tighten margin-long. Macroeconomic prospects continue to cause discomfort.
As of now, the annual interest rate for ETH on Coinlend is at an amazing 197%. The spike could be related to margin-long for ETH on Bitfinex.
Many traders are choosing to wait on the sidelines to see how this works. There is also some speculation that this is the effect from the upcoming "2.0 phase" of ETH 2.0, which is expected to be released in July. However, it should be noted that even with the 'phase 0' release, Ethereum 2.0 will not function fully for years.
According to AZCoin News
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