This Tuesday, multiple loan orders on the bitcoin (BTC) and cryptocurrency exchange Bitfinex were placed at annual percentage rates of 30%. Large traders have started increasing their positions heavily, emanating clear bullish signals for the bitcoin (BTC) and cryptocurrency market.
According to Greeks.live, loan rates are they shot despite a small setback in the market, remembering that the price of bitcoin fell since Sunday, October 20, from $69,400 at an average of $67,300a price it maintains at the close of this article, according to TradingView data.
The analytics firm notes that even with the pullback, this lending activity “is a strong bullish signal, and 30% APR lending has been an accurate sign of a major bull market over the past two years.” .
The bullish signal that represents this increase in loans collateralized by bitcoin or cryptocurrencies on the Bitfinex exchange is derived from the investors’ strategy to take advantage of what they perceive as a low BTC price. By using their BTC as collateral to obtain loans, these investors seek to acquire more cryptocurrencies in order to benefit from future appreciation in value.
This action suggests a strong conviction in a future bullish trend for BTCas investors are willing to risk their current collateral for the promise of additional profits. However, this speculation carries risks; If the price of bitcoin falls significantly, investors could not only lose expected profits but also the BTC deposited as collateral, reflecting the high risk and volatility inherent in the cryptocurrency market.
Bitfinex is known as the ninth largest cryptocurrency exchange in terms of trading volume, which gives it a significant position in the cryptocurrency ecosystem.
Other bullish signals for the market
This is not the only bullish signal for the market. CriptoNoticias reported yesterday a significant increase in the issuance of USD Tether (USDT) and other stablecoins. This increase usually has a positive impact on the price of BTC, since investors They tend to move their funds towards this asset.
According to the report, the issuance of USDT and stablecoins in general has grown by more than 2 billion dollars in the last week, suggesting greater liquidity in the market.
The cryptocurrency market, particularly bitcoin, appears to be in “uptober mode.” This means that it is foreseeable that BTC begin to undertake a sustained price rise in the weeks to come. The combination of high borrowing at high rates and the increase in stablecoin issuance suggests renewed interest and growing confidence in the market.
The recent pullback in BTC price, while worrying to some, appears to be seen by large traders as an opportunity to increase their positions. The relative stability of the price, even after the decline, together with the increase in lending activity, suggests a solid foundation for a recovery and possible surpassing of previous prices.
Given all that, the cryptocurrency market is showing multiple bullish signs. From rising lending rates to the issuance of stablecoins, everything points to growing interest and an expectation of future profits. Bitcoin, in particularseems ready to resume its upward trendsupported by a community of investors who see this moment as an opportunity for growth.
This article was created using artificial intelligence and edited by a human Editor.
