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Why did 12K Bitcoin margin longs close at Bitfinex, and why didn’t it impact BTC price?


Since May 2022, the Bitcoin (BTC) margin markets on the Bitfinex exchange have been plagued by an unusually high open interest of over $2.7 billion. This information alone should raise a red flag, especially in light of Bitcoin’s price decline from $39,000 to less than $25,000 during the same period.

Traders seeking to leverage their cryptocurrency position had borrowed over 105,000 Bitcoin. Currently, the cause of this anomaly is unknown, as well as the number of entities involved in the trade.

Bitfinex BTC margin longs, in BTC contracts. Source: TradingViewOKX stablecoin/BTC margin lending ratio. Source: OKX

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