Bitfinex attributed a rise in Bitcoin (BTC) futures positions during an Oct. 14-15 price decline to newly opened shorts, highlighting a shift in leverage before a later influx into U.S. spot funds.
Farside Investors’ data show U.S. spot Bitcoin exchange-traded funds (ETFs) received $526.7 million on Oct. 19. That single-day inflow narrowed October’s net outflow to $88 million through that date. The fund reading came four days after the futures figures cited by Bitfinex.
Open interest, a measure of outstanding futures positions, increased 3.8% to 645,682 BTC, valued at $52.5 billion, at 6 a.m. ET (10:00 UTC) on Oct. 15. It stood at 622,098 BTC at 4:30 a.m. ET (08:30 UTC) on Oct. 14. Bitcoin’s price fell 2.2% over that interval. Bitfinex inferred that traders were adding shorts because open interest rose as the price dropped and funding rates briefly turned negative.
Long-position liquidations across cryptocurrencies totaled $918.2 million on Oct. 14 and 15, including $185.4 million in Bitcoin longs. Altcoins accounted for 79% of liquidations across both long and short positions during those sessions, according to Bitfinex.
Open interest at the Chicago Mercantile Exchange was about 110,000 BTC, roughly 17% of the aggregate. On Bitfinex, margin longs amounted to about 89,600 BTC, while margin shorts totaled 246 BTC. The exchange said spot trading was likely to have more influence on Bitcoin’s near-term price than forced closures of derivatives positions.
Bitfinex also pointed to an Oct. 7 episode: It said shorts accumulated after Bitcoin fell below $84,000, then faced pressure when the price recovered that level the following week.
In an Oct. 19 update, Bitfinex said leveraged longs had returned during Bitcoin’s rebound, leaving those positions exposed to liquidation if prices fell. The exchange identified daily U.S. spot Bitcoin ETF flows, futures open interest and funding rates as measures to watch. The Federal Reserve’s next policy meeting is scheduled for Oct. 27-28.
