Several bitcoin whales have capitalized on BTC’s recent price decreases to solidify their stance on the market. According to on-chain data from the blockchain analytics platform, Datamish, some BTC whales have taken a long position with approximately 4,230 BTC on the cryptocurrency exchange Bitfinex over the past week.
Bitfinex Whales Long BTC
A crypto trader takes a long position when they purchase a cryptocurrency at a certain price with the hope that the asset’s value will rise over time. The latest analysis shows that more Bitfinex whales are optimistic that BTC’s value will soar in the future.
According to Datamish’s data, Bitfinex’s BTC long positions saw a gradual decline in November from over 94,700 BTCs to 88,800 BTCs. In late November, the longs dropped sharply to 80,700 BTCs. During this period, BTC’s value traded around the $35,000 price mark.
The downtrend in Bitfinex’s BTC longs rolled over to this year, dropping to as low as approximately 67,600 BTCs earlier this month. From January 17th to date, an uptrend in BTC longs has ensued, bringing the metric to as high as 72,437 BTCs at press time.
Source: Datamish
Short positions, on its part, currently hover around 450 BTCs. Unlike long positions, crypto traders take short positions by selling an asset to repurchase it at a lower price.
BTC’s Value Drops to $39k
According to the price-tracking website CoinStats, Bitcoin’s value currently trades at $39,000. The price represents a 4.4% decrease in the past 24 hours, and a 9% downtrend from its value over the past week.
Bitcoin’s recent downtrend can be attributed to a recent selloff from investors. Around the time the U.S. Securities and Exchange Commission (SEC) approved the spot Bitcoin exchange-traded fund (ETF) trading in the country, most financial firms offering the asset downsized their fees. However, Grayscale refused to join the trend, maintaining a 1.5% fee.
Although investors initially plunged their funds into Grayscale’s Bitcoin ETF product, reports show that they are now pulling their money off the platform and putting it into other financial institutions offering the same spot BTC ETF. Currently, over $2 billion has been withdrawn from Grayscale.
