Lending rates on Bitfinex have risen dramatically, with multiple orders being charged at an annual percentage rate (APR) of 30%, according to data from cryptocurrency analytics firm GreeksLive.
This sudden spike is seen as a strong bullish signal, as large spot investors appear to be increasing their positions in response to the recent market pullback.
“Bitfinex lending rates have skyrocketed and multiple orders were lent today at a high APR of 30%. With a small pullback in the market, large spot traders have started adding to their positions in a big way, so to speak. This is a strong bullish signal,” GreeksLive said.
Historically, 30% APR lending on Bitfinex has been an accurate indicator of a major bull market over the past two years, analysts say. The current surge signals renewed confidence among institutional and large-scale investors, signaling a potential rally in cryptocurrency prices in the coming weeks.
The world’s largest cryptocurrency is trading at $67,015 at the time of writing, and recently visited above $69,000.
*This is not investment advice.