Why did 12K Bitcoin margin longs close at Bitfinex, and why didn’t it impact BTC price?
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Since May 2022, the Bitcoin (
Recent crypto bank closures could have triggered the movement
Another possibility for the sudden decrease in margin demand is the $4 billion in deposits associated with the now defunct Signature Bank and its digital banking business. Crypto clients were told to close their accounts by April, according to a Bloomberg report.
While New York Community Bancorp (NYCB) purchased the majority of Signature Bank’s deposits and loans on March 19, the deal with the FDIC did not include crypto-related accounts.
If those whales are forced to close their banking accounts, they will most likely reduce their arbitrage positions, including those in margin markets. For the time being, all assumptions are speculative, but one thing is certain: the 12,000 BTC long margin reduction at Bitfinex had no effect on Bitcoin prices.
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