Bitfinex Margin Traders Go All-In as Bitcoin Struggles
Despite Bitcoin’s (BTC) steep decline, margin traders on Bitfinex are aggressively increasing their leveraged positions, signaling confidence in a potential market rebound.
Since the start of 2025, Bitcoin holdings acquired through margin trading on Bitfinex have surged by over 13,000 BTC, with the total now exceeding 60,000 BTC—up from 50,773 earlier this month. Notably, these leveraged longs climbed 2% in just the past 24 hours, according to Coinglass and TradingView data.
This surge in leveraged buying comes amid Bitcoin’s worst monthly decline since June 2022, with prices plummeting over 20% in February. However, Bitfinex traders—many of whom are large-scale investors, or “whales”—have a track record of accumulating BTC during downturns, often preceding strong rebounds.
A historical analysis of margin positions over the past five years shows a clear pattern: these traders tend to increase leverage when Bitcoin dips and scale back as prices approach market peaks. This was evident during the 2021 and 2024 bull runs, reinforcing their reputation for anticipating major market moves.
Meanwhile, broader sentiment in the crypto space is deteriorating. Coinglass’ Crypto Fear & Greed Index has entered “extreme fear” territory, a sharp contrast to the past year, where greed and extreme greed dominated for over 230 days.
While fear grips the market, Bitfinex traders are making a bold bet that the current dip is a buying opportunity rather than the start of a prolonged downturn.
