Galaxy Digital goes long on Bitcoin: What’s next?
- Galaxy Digital has gone long on Bitcoin with 4,162 BTCs.
- BTC still traded above $34,000 despite a decline.
Given the ongoing upward trajectory of Bitcoin’s [BTC] price, some holders remained optimistic about its continued rise. Meanwhile, institutions like Galaxy Digital are placing their bets on this upward trend.
Read Bitcoin’s [BTC] Price Prediction 2023-24
With Galaxy’s recent actions, how do short-term and long-term traders fare in the current market?
Galaxy goes long on Bitcoin
According to a 28 October tweet by Lookonchain, Galaxy Digital has taken a long position in Bitcoin. The address indicated that the institution deposited a total of 4,162 BTC into Aave [AAVE] and Compound.
At the time of this writing, the deposited BTC was valued at over $140 million.
This recent move by Galaxy Digital meant that the firm was placing a bet on BTC’s rising price. It’s worth noting that other market participants also share this sentiment.
Bitcoin funding rates remain positive
According to data from Coinglass, Bitcoin has maintained a positive Funding Rate over the past few days. After the Funding Rate spiked on 24 October, reaching its highest point in almost five months, it has since decreased.
However, it remained higher than the levels observed in recent months. As of the latest available data, the Funding Rate was approximately 0.015%.
Furthermore, despite traders taking long positions on BTC, the past couple of days have witnessed a higher number of liquidations in long positions.
The liquidation chart revealed that on 26 October, long position liquidations exceeded $20 million, whereas short position liquidations amounted to just over $9 million.
Similarly, on 27 October, there were over $24 million in long position liquidations, while short position liquidations were slightly above $5 million. As of this writing, long positions led the liquidation with over $1 million.
BTC gives long position traders hope
On the daily timeframe chart of Bitcoin, 28 October saw a modest price increase of less than 1%. This gain followed two consecutive days of noticeable downtrends.
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However, at the time of this update, Bitcoin had resumed its downward movement with a decline of less than 1%. Notably, it managed to keep its price above the $34,000 mark.
Given the current bullish trend, it’s likely that a price correction may occur. Once the correction takes place and the price rebounds, long-position holders could potentially enjoy substantial returns.