Leveraged Buying on Bitfinex Spikes as Bitcoin Dips, Raising Risk Exposure.

Bitcoin Traders Leverage Up on Bitfinex Despite Market Sell-Off

Bitcoin (BTC) margin traders on Bitfinex are doubling down on their bullish bets, even as the cryptocurrency faces one of its worst monthly declines in years.

Since the beginning of 2025, BTC holdings purchased on margin at Bitfinex have jumped by over 13,000 BTC, reflecting increased risk appetite despite a turbulent market.

The total number of BTC acquired through borrowed funds has surged from 50,773 to more than 60,000 this month, including a 2% rise in the past 24 hours alone, according to data from Coinglass and TradingView.

This growing interest in leveraged long positions comes as Bitcoin struggles, shedding over 20% in February—its worst monthly performance since June 2022.

Bitfinex traders, largely composed of whales with significant Bitcoin holdings, have historically used margin longs to accumulate during periods of market distress. Past trends suggest their activity often precedes major price reversals, as seen during the 2021 and 2024 market cycles.

Long-term data indicates that these traders tend to increase margin positions when prices dip and reduce exposure near market peaks, reinforcing their reputation for accurately timing market movements.

Meanwhile, broader crypto sentiment has taken a sharp bearish turn. Coinglass’ Crypto Fear & Greed Index now reflects extreme fear—an unusual occurrence in the past year, where over 230 days were dominated by greed and extreme greed.