Crypto Exchange Activity Signals Bullish Sentiment Amid September Bearish Trends

Crypto Exchange Activity Defies Bearish Trends in Bitcoin

Recent activity on a prominent crypto exchange, known for its large holders or “whales,” is challenging the prevailing concerns regarding seasonal bearish trends in Bitcoin’s (BTC) price. Historically, Bitcoin has experienced an average decline of 4% in September since its inception in 2009, as reported by Bitcoinmonthlyreturn.com. In six out of the last seven years, this month has been characterized by a bearish sentiment, leading many observers to adopt a cautious stance on the immediate price outlook of the largest cryptocurrency.

However, traders on the Bitfinex crypto exchange, which has a notable history of influencing market dynamics, appear to be positioning themselves for a bullish trend. Since August 28, the number of margin long positions on Bitfinex—where traders use borrowed capital to buy BTC in the spot market—has surged by a net of 3,000 BTC, bringing the total to nearly 64,350 BTC, according to data from Greeks.Live and Coinglass. Additionally, the annualized interest rate for borrowed funds has skyrocketed to over 20% in just the past 10 hours, indicating heightened borrowing activity.

In essence, traders are actively leveraging borrowed funds to increase their Bitcoin holdings, betting that this year, the cryptocurrency will break free from its historically bearish September trend. According to Greeks.Live, “Greens lending rates and long positions have consistently served as a strong bullish indicator; the previous two major spikes were preceded by significant increases in both rates and long positions.”

Furthermore, activity in Bitcoin perpetual futures across global markets is also reflecting a renewed bullish sentiment. This is evident from the positive shift in the open interest-weighted global average funding rates. Positive rates suggest that perpetual futures are trading at a premium compared to the spot price, underscoring a dominance of bullish bets among traders.

In parallel, over-the-counter (OTC) desks are witnessing a resurgence in demand for Bitcoin call options, which offer asymmetric payoffs during upward price movements. “The options market has started to see a substantial number of block calls, accounting for 30% of the day’s total, indicating that whales are establishing long positions across the board,” Greeks.Live noted.

Additionally, call spread strategies have been observed on the OTC network Paradigm, with significant activities recorded on Monday. According to Paradigm’s Telegram broadcast, “OTM’s [out-of-the-money] options were in focus today, including an 80K/100K December call spread and an ETH 27 December/28 March calendar spread. Another noteworthy SOL print was also noted.” This activity exemplifies the growing confidence among traders as they navigate the complexities of the current market landscape.