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2.2% of All Ethereum Is Long on Bitfinex: 3 Reasons Why This Could Go Wrong


2.2% of All Ethereum Is Long on Bitfinex: 3 Reasons Why This Could Go Wrong

Despite the ongoing retracement in the prices of Bitcoin, Ethereum, and other top cryptocurrencies, investors remain highly optimistic about this market. ETH, especially, has benefited from traders, with data from leading crypto exchange Bitfinex indicating that there are more long positions open for Ethereum than ever before. “What. Is. Happening. 2.2% of all ETH in existence is now margin long on Bitfinex, an increase of 160% since ~February,” one trader explained in reference to the chart below.” Yet there are signs that this investment activity could end poorly for long position holders.

#1: Exchanges Are Holdinging More Ethereum Than Ever Before

The Ethereum holdings of crypto exchanges are “basically at all-time highs,” recently reaching approximately 18 million coins, according to a prominent crypto analyst. According to him, this is potentially a bearish sign for ETH, likely referencing how it indicates that investors are looking to sell the cryptocurrency for other tokens or fiat. Read More...