Bitfinex Traders Are Longing Bitcoin En Masse
The number of Bitcoin (BTC) longs on the Bitfinex exchange has increased over 74 percent in less than two weeks, currently approaching a new all-time high.
Given that Bitfinex is a major exchange, its dataset can be used as a proxy for the broader market sentiment.
Crypto traders are heavily betting on a bullish market reversal, with Bitcoin expected to post its biggest monthly loss ever this May.
While some believe that such crowded trades tend to be contrarian, Bitfinex traders were on the right side of the market ahead of the May 19 crash. Three days prior to the massive wipeout, the number of short positions skyrocketed by 368 percent on the exchange, which was followed by a 77 percent plunge on the day of the massive correction.
Bitcoin is currently trading just above $37,000 after a modest three percent uptick which is too small to brighten up the flagship coin’s disastrous month.