Bitcoin rose above the $70,000 level following developments regarding the Iran ceasefire. However, it is observed that the rise is currently proceeding cautiously for investors.
The high level of Bitfinex long positions attracts attention
One of the important indicators to understand the direction of Bitcoin is leveraged long positions on the Bitfinex exchange. According to the latest data, long positions remain at the highest level of the last two years at 80,057 BTC. This level indicates that market participants continue to take positions with the expectation of an increase by borrowing.
On the other hand, Bitcoin price is up over 15 percent after recovering from $60,000 two months ago. Despite this, there was no significant unwinding in long positions. It is thought that the recent rise in the market is not perceived as a sign that the risk has completely disappeared.
In the past, long positions on Bitfinex were often treated as inverse indicators. So these positions generally increase when the market is under pressure and dissolve when prices gain strength. In some past examples, long positions have been quickly closed when the price of Bitcoin fell, such as unwinding of Japanese yen carry transactions and tariff tensions.
Demand instability continues in the US market
Another indicator, the Coinbase Bitcoin Price Index, is traded at a premium or discount compared to the global market price from time to time. This index reveals the difference between the Bitcoin price on Coinbase and the global average and is used as an important tool, especially in understanding institutional investor demand.
Recent fluctuations show that purchases from the USA are not stable. The fact that the index has difficulty finding direction indicates that US-based investors do not strongly support the rise, and this raises questions about whether the rally will continue.
This cautious stance in the market is also reflected in crypto-related company stocks. While the relevant stocks were in the green zone on Wednesday, it seems that the increases were limited compared to past losses.
These stocks include Coinbase, the leading US crypto exchange, as well as stablecoin exporter Circle, digital asset manager Galaxy Digital and Strategy company. Coinbase shares increased by 1.5 percent, Circle and Galaxy Digital by 0.6 percent, and Strategy by 3 percent.
It is noteworthy that there is no hesitation in the broader risk markets; Rises in Nasdaq and S&P 500 indices were higher than crypto stocks.
