Bitcoin Drops to $41,197 Amid Market Volatility and Shifts in Bitfinex
Why you should keep an eye on Bitcoin and USDT on this crypto exchange
The world of cryptocurrencies is constantly in motion and it’s important to stay up to date. An interesting development has recently occurred on the crypto exchange Bitfinex, which affects both Bitcoin and Tether (USDT).
Bitcoin and USDT: An interesting correlation
In recent days, Bitcoin has suffered considerable downward pressure and has fallen from its annual high of $48,000 by up to 14%. At the time of publication of this article, the price of the king coin was at $41,197, with the fear of further losses occupying market participants.
Alongside these developments, analyst Joao Wedson of CryptoQuant pointed out interesting events on the popular crypto exchange Bitfinex. Wedson noted a decrease in the Open Interest (OI) of Bitcoin on the exchange by 21%. At the same time, the reserves of Tether (USDT) on the trading platform increased from $5.3 million to $190 million.
What does this mean for investors?
These figures indicate a clear trend: large traders are closing or reducing their positions in response to recent price fluctuations in the crypto market. In addition, the analyst emphasized the relationship between the Open Interest (OI) of Bitfinex and the price movement of Bitcoin. This is noteworthy because market observers do not attribute the same value to the OI of Bitfinex as they do to other major exchanges.
Comparison with other exchanges
For comparison, AMBCrypto analyzed the OI trend of Bitcoin on the leading exchange Binance. It is noteworthy that the Open Interest (OI) of Binance has only fallen by 3.4% since January 11, while Bitcoin, as already mentioned, has fallen by 14% since then. In contrast, the OI of Bitfinex fell by 12.5% in the mentioned period, which is much closer to the decline of Bitcoin.
The trends of the Open Interest (OI) of Bitfinex could therefore provide important insights into the future price development of Bitcoin. It is therefore important to keep an eye on both Bitcoin and USDT on this exchange.
Source: AMBCrypto, CryptoQuant, Coinglass.
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