Bitcoin is an asset for everyone, but that doesn't mean the whales don't swallow as many coins as they can, with the intention of sometimes giving them back and causing a big wave across the entire market. Most prominent cryptocurrencies on the market, a battle between these whales is taking place, causing both long and short positions to reach all-time highs. But which side will win and what will happen when it finally explodes?
Bitcoin Whales Drive Open Interest in Bitfinex in Longs and Shorts to Records
Bitcoin price action is still reeling, looking for enough support to end the current downturn. The longer it takes for this support to form, the less chance the bull market will simply hit new highs. But because there is so much at stake whether that happens or not, the big players in the Bitfinex trading platform have opened one of the hottest positions. However, with yesterday's high, more than 15,000 BTC in shorts were filled, also bringing short positions on the best known whale stock exchange to peak levels. Bitcoin price has since retreated to allow the pessimistic whales to breathe a little. After catching their breath, they could try to make noise and move the market in the direction they want – which is clearly down?Positions in shorts reach levels as high as in March 2020 on Bitfinex. Source: TradingView.
Bears and bulls: who will win?
Traders on Bitfinex are significantly leveraged on buying as well, reaching more than $1.7 billion in long positions. Bitfinex is known for its low leverage, allowing traders to absorb large losses without liquidating. Short positions were at a record low, so they soared by nearly $500 million of what is possibly a single large whale. Squeezing a trader that size, given the leverage, seems unlikely.Who should win, longs or shorts? Data source: BlockchainWhispers and Bitcoinist. Sitting in a long position waiting for the upside to return to Bitcoin makes sense, even if it's a game of solitaire, but staying short while Bitcoin rises doesn't seem logical. if there's a strategy involved, this whale in short may know something the rest of the market doesn't. Will this bitcoin whale make a lot of money from a much deeper drop, while the rest of the market is long and ready for another squeeze? Or is it the pessimistic whale that will be squeezed? Leave your opinion in the comments below.