Key takeaways:

Bitfinex margin longs fell 18%, despite Bitcoin price rising 24% in 30 days.

$6.8 billion in long positions far outweight the current $25 million in shorts.

Bitcoin options positioning and spot BTC inflows point to confidence from institutional investors.

Bitcoin (BTC) price climbed 23.7% over the past 30 days, yet traders on Bitfinex have cut their leveraged long positions by more than 18,000 BTC during this time. This wave of profit-taking in margin markets has led to speculation that professional traders may not be fully confident in the current $104,000 price level.

Bitfinex BTC margin longs, BTC. Source: TradingView / Cointelegraph

Bitfinex margin longs dropped to 65,889 BTC from 80,387 BTC between April 16 and May 16. This shift marks a reversal from the strong bullish margin demand seen between mid-February and mid-March, a period when Bitcoin’s price fell to $82,500 from $97,600. The current decrease in margin longs is likely a sign of healthy profit-taking rather than a turn toward bearish momentum.

The reasoning behind this move is not entirely clear, since Bitcoin’s jump above $100,000 occurred on May 8, about three weeks after the margin longs peaked. Still, it would be wrong to suggest that Bitfinex whales have adopted a bearish outlook. Their margin longs now total $6.8 billion, while margin shorts stand at just $25 million, showing a major gap between bullish and bearish positions.

Bitfinex BTC margin shorts, BTC. Source: TradingView / Cointelegraph

This difference is mainly due to Bitfinex’s low 0.7% annual interest rate for margin trading. By contrast, those using leverage for 90-day Bitcoin futures are paying a 6.3% annualized premium. This gap creates arbitrage opportunities.

For example, one can open Bitcoin longs on margin and simultaneously sell an equivalent position in BTC futures to benefit from the rate difference. Margin traders also tend to have longer time frames and higher risk tolerance than average investors, so their position changes are less affected by short-term price moves.

Whales unfazed by $105,000 resistance as BTC ETFs drive optimism

To rule out factors limited to margin markets, it is useful to look at Bitcoin options. If traders expect a correction, demand for put (sell) options rises, pushing the 25% delta skew above 6%. In bullish periods, this metric usually drops below -6%.

Bitcoin 30-day options delta skew (put-call) at Deribit. Source: Laevitas.ch

The current -6% options delta skew shows confidence in Bitcoin’s price, even though data over the past two weeks has ranged from neutral to slightly bullish. This indicates that whales and market makers are not especially concerned about repeated failures to break above the $105,000 barrier.

Related: Bitcoin traders’ evolving view of BTC’s role in every portfolio bolsters $100K support

Some of the increased optimism, despite lower demand for leveraged bullish positions, comes from the $2.4 billion net inflows to US spot Bitcoin exchange-traded funds (ETFs) between May 1 and May 15. Therefore, the drop in Bitcoin margin longs does not mean institutional traders are turning bearish, especially when considering the BTC options markets.

Although this data does not reveal whether Bitcoin is any closer to breaking above $105,000, the fact that there are $6.8 billion in leveraged margin longs clearly shows that professional traders remain highly optimistic about the price outlook.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Zach Witkoff, one of the co-founders of the Donald Trump family-backed crypto platform World Liberty Financial (WLFI), has rebuffed efforts by US lawmakers to investigate the president’s potential conflicts of interest.

In a May 15 letter to Senator Richard Blumenthal, lawyers for World Liberty Financial claimed a call to investigate the crypto platform was based on “fundamentally flawed premises and inaccuracies.” Witkoff did not specifically address any allegations, claiming that WLFI was “too busy building” for oversight.

“The Company rejects the false choice between innovation and oversight,” said the letter. “What it opposes is the misuses of regulatory authority and uncertainty to suppress lawful innovation.”

May 15 letter to Sen. Blumenthal. Source: Zach Witkoff

Blumenthal, the ranking member of the US Senate Permanent Subcommittee on Investigations, was one of many Democrats calling for investigations and legislative changes in response to Trump’s ties to WLFI, as well as his TRUMP memecoin and its dinner scheduled for the top tokenholders on May 22.

The GENIUS Act, a bill to recognize stablecoins as payment instruments currently being considered in Congress, may be a bellwether for how lawmakers intend to handle the president’s potential conflicts of interest.

Stablecoin bill debate continues in Republican-controlled Congress

One of Blumenthal’s and many US lawmakers’ concerns about Trump’s connection to WLFI is the USD1 stablecoin, which the platform launched in March. An Abu Dhabi-based investment firm announced in May that it would use the stablecoin to settle a $2-billion investment in Binance, a crypto exchange that had previously been the target of an investigation by US authorities. 

“WLFI’s financial entanglements with the President, his family, and the Trump Administration present unprecedented conflicts of interest and national security risks, including potential violations of the foreign emoluments clause,” Blumenthal wrote in a May 6 letter to Witkoff.

Related: What are the next steps for the US stablecoin bill?

Some Democrats have called for clarification within the GENIUS Act to ensure that Trump was not able to personally profit from stablecoins whose legislation he may have influenced and then have the opportunity to sign into law. However, as of May 16, it was unclear whether any future vote on the bill would address these concerns. Cointelegraph reached out to Sen. Blumenthal’s office for comment but had not received a response at the time of publication. 

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

Zach Witkoff, one of the co-founders of the Donald Trump family-backed crypto platform World Liberty Financial (WLFI), has rebuffed efforts by US lawmakers to investigate the president’s potential conflicts of interest.

In a May 15 letter to Senator Richard Blumenthal, lawyers for World Liberty Financial claimed a call to investigate the crypto platform was based on “fundamentally flawed premises and inaccuracies.” Witkoff did not specifically address any allegations, claiming that WLFI was “too busy building” for oversight.

“The Company rejects the false choice between innovation and oversight,” said the letter. “What it opposes is the misuses of regulatory authority and uncertainty to suppress lawful innovation.”

May 15 letter to Sen. Blumenthal. Source: Zach Witkoff

Blumenthal, the ranking member of the US Senate Permanent Subcommittee on Investigations, was one of many Democrats calling for investigations and legislative changes in response to Trump’s ties to WLFI, as well as his TRUMP memecoin and its dinner scheduled for the top tokenholders on May 22.

The GENIUS Act, a bill to recognize stablecoins as payment instruments currently being considered in Congress, may be a bellwether for how lawmakers intend to handle the president’s potential conflicts of interest.

Stablecoin bill debate continues in Republican-controlled Congress

One of Blumenthal’s and many US lawmakers’ concerns about Trump’s connection to WLFI is the USD1 stablecoin, which the platform launched in March. An Abu Dhabi-based investment firm announced in May that it would use the stablecoin to settle a $2-billion investment in Binance, a crypto exchange that had previously been the target of an investigation by US authorities. 

“WLFI’s financial entanglements with the President, his family, and the Trump Administration present unprecedented conflicts of interest and national security risks, including potential violations of the foreign emoluments clause,” Blumenthal wrote in a May 6 letter to Witkoff.

Related: What are the next steps for the US stablecoin bill?

Some Democrats have called for clarification within the GENIUS Act to ensure that Trump was not able to personally profit from stablecoins whose legislation he may have influenced and then have the opportunity to sign into law. However, as of May 16, it was unclear whether any future vote on the bill would address these concerns. Cointelegraph reached out to Sen. Blumenthal’s office for comment but had not received a response at the time of publication. 

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

Zach Witkoff, one of the co-founders of the Donald Trump family-backed crypto platform World Liberty Financial (WLFI), has rebuffed efforts by US lawmakers to investigate the president’s potential conflicts of interest.

In a May 15 letter to Senator Richard Blumenthal, lawyers for World Liberty Financial claimed a call to investigate the crypto platform was based on “fundamentally flawed premises and inaccuracies.” Witkoff did not specifically address any allegations, claiming that WLFI was “too busy building” for oversight.

“The Company rejects the false choice between innovation and oversight,” said the letter. “What it opposes is the misuses of regulatory authority and uncertainty to suppress lawful innovation.”

May 15 letter to Sen. Blumenthal. Source: Zach Witkoff

Blumenthal, the ranking member of the US Senate Permanent Subcommittee on Investigations, was one of many Democrats calling for investigations and legislative changes in response to Trump’s ties to WLFI, as well as his TRUMP memecoin and its dinner scheduled for the top tokenholders on May 22.

The GENIUS Act, a bill to recognize stablecoins as payment instruments currently being considered in Congress, may be a bellwether for how lawmakers intend to handle the president’s potential conflicts of interest.

Stablecoin bill debate continues in Republican-controlled Congress

One of Blumenthal’s and many US lawmakers’ concerns about Trump’s connection to WLFI is the USD1 stablecoin, which the platform launched in March. An Abu Dhabi-based investment firm announced in May that it would use the stablecoin to settle a $2-billion investment in Binance, a crypto exchange that had previously been the target of an investigation by US authorities. 

“WLFI’s financial entanglements with the President, his family, and the Trump Administration present unprecedented conflicts of interest and national security risks, including potential violations of the foreign emoluments clause,” Blumenthal wrote in a May 6 letter to Witkoff.

Related: What are the next steps for the US stablecoin bill?

Some Democrats have called for clarification within the GENIUS Act to ensure that Trump was not able to personally profit from stablecoins whose legislation he may have influenced and then have the opportunity to sign into law. However, as of May 16, it was unclear whether any future vote on the bill would address these concerns. Cointelegraph reached out to Sen. Blumenthal’s office for comment but had not received a response at the time of publication. 

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

Zach Witkoff, one of the co-founders of the Donald Trump family-backed crypto platform World Liberty Financial (WLFI), has rebuffed efforts by US lawmakers to investigate the president’s potential conflicts of interest.

In a May 15 letter to Senator Richard Blumenthal, lawyers for World Liberty Financial claimed a call to investigate the crypto platform was based on “fundamentally flawed premises and inaccuracies.” Witkoff did not specifically address any allegations, claiming that WLFI was “too busy building” for oversight.

“The Company rejects the false choice between innovation and oversight,” said the letter. “What it opposes is the misuses of regulatory authority and uncertainty to suppress lawful innovation.”

May 15 letter to Sen. Blumenthal. Source: Zach Witkoff

Blumenthal, the ranking member of the US Senate Permanent Subcommittee on Investigations, was one of many Democrats calling for investigations and legislative changes in response to Trump’s ties to WLFI, as well as his TRUMP memecoin and its dinner scheduled for the top tokenholders on May 22.

The GENIUS Act, a bill to recognize stablecoins as payment instruments currently being considered in Congress, may be a bellwether for how lawmakers intend to handle the president’s potential conflicts of interest.

Stablecoin bill debate continues in Republican-controlled Congress

One of Blumenthal’s and many US lawmakers’ concerns about Trump’s connection to WLFI is the USD1 stablecoin, which the platform launched in March. An Abu Dhabi-based investment firm announced in May that it would use the stablecoin to settle a $2-billion investment in Binance, a crypto exchange that had previously been the target of an investigation by US authorities. 

“WLFI’s financial entanglements with the President, his family, and the Trump Administration present unprecedented conflicts of interest and national security risks, including potential violations of the foreign emoluments clause,” Blumenthal wrote in a May 6 letter to Witkoff.

Related: What are the next steps for the US stablecoin bill?

Some Democrats have called for clarification within the GENIUS Act to ensure that Trump was not able to personally profit from stablecoins whose legislation he may have influenced and then have the opportunity to sign into law. However, as of May 16, it was unclear whether any future vote on the bill would address these concerns. Cointelegraph reached out to Sen. Blumenthal’s office for comment but had not received a response at the time of publication. 

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

A federal judge has sentenced Eric Council Jr., one of the individuals responsible for posting a fake message announcing regulatory approval of spot Bitcoin exchange-traded funds, to 14 months in prison.

Following a May 16 hearing in the US District Court for the District of Columbia, the Justice Department announced that Council would serve 14 months in prison after pleading guilty to one count of conspiracy to commit aggravated identity theft and access device fraud. He was part of a group that compromised the X account of the US Securities and Exchange Commission (SEC) through a SIM swap attack in January 2024, claiming the regulatory body would be approving spot Bitcoin (BTC) ETFs.

“Schemes of this nature threaten the health and integrity of our market system,” said Jeanine Pirro, interim US Attorney for the District of Columbia. “SIM swap schemes threaten the financial security of average citizens, financial institutions, and government agencies.”

Prosecutors had requested that the judge impose a two-year sentence, while Council’s lawyers asked for one year and one day. Court filings showed he earned roughly $50,000 through SIM swap attacks like the one that compromised the SEC’s X account — funds likely subject to forfeiture.

Related: Coinbase faces $400M bill after insider phishing attack

The judge ordered Council to serve 36 months of supervised release after his sentence. It was unclear at the time of publication when he would report to prison, but he has been free on a personal recognizance bond since his arrest in October 2024.

Other crypto figures have their days in court

Council was the latest individual to be sentenced who drew the attention of the crypto industry. Though high-profile criminal cases like those involving executives from cryptocurrency exchange FTX have largely been concluded, others remain ongoing.

On May 8, former Celsius CEO Alex Mashinsky was sentenced to 12 years following his guilty plea on two felony counts. The criminal trial of former SafeMoon CEO John Karony is also expected to continue for several more days in the US District Court for the Eastern District of New York.

Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee

A federal judge has sentenced Eric Council Jr., one of the individuals responsible for posting a fake message announcing regulatory approval of spot Bitcoin exchange-traded funds, to 14 months in prison.

Following a May 16 hearing in the US District Court for the District of Columbia, the Justice Department announced that Council would serve 14 months in prison after pleading guilty to one count of conspiracy to commit aggravated identity theft and access device fraud. He was part of a group that compromised the X account of the US Securities and Exchange Commission (SEC) in January 2024 and said the regulatory body would be approving spot Bitcoin (BTC) ETFs.

Prosecutors had requested that the judge impose a two-year sentence, while Council’s lawyers asked for one year and one day. Court filings showed he earned roughly $50,000 through SIM swap attacks like the one that compromised the SEC’s X account — funds likely subject to forfeiture.

This is a developing story, and further information will be added as it becomes available.

A federal judge sentenced Eric Council Jr., who participated in posting a fake announcement on the US Securities and Exchange Commission’s X account saying it would approve spot Bitcoin (BTC) ETFs, to 14 months in prison.

Following a May 16 hearing in the US District Court for the District of Columbia, the Justice Department announced that Council would serve 14 months in prison after pleading guilty to one count of conspiracy to commit aggravated identity theft and access device fraud.

“Schemes of this nature threaten the health and integrity of our market system,” said Jeanine Pirro, interim US Attorney for the District of Columbia. “SIM swap schemes threaten the financial security of average citizens, financial institutions, and government agencies.”

Council was part of a group that compromised the X account of the US Securities and Exchange Commission (SEC) through a SIM swap attack in January 2024. Prosecutors had requested that the judge impose a two-year sentence, while Council’s lawyers asked for one year and one day. Court filings showed he earned roughly $50,000 through SIM swap attacks like the one that compromised the SEC’s X account — funds likely subject to forfeiture.

Related: Coinbase faces $400M bill after insider phishing attack

The judge ordered Council to serve 36 months of supervised release after his sentence. It was unclear at the time of publication when he would report to prison, but he has been free on a personal recognizance bond since his arrest in October 2024.

Other crypto figures have their days in court

Council was the latest individual to be sentenced who drew the attention of the crypto industry. Though high-profile criminal cases like those involving executives from cryptocurrency exchange FTX have largely been concluded, others are ongoing.

On May 8, former Celsius CEO Alex Mashinsky was sentenced to 12 years following his guilty plea on two felony counts. The criminal trial of former SafeMoon CEO John Karony is also expected to continue for several more days in the US District Court for the Eastern District of New York.

Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee

Christy Goldsmith Romero of the US Commodity Futures Trading Commission (CFTC) will step down on May 31, leaving three seats open at the financial regulator.

In a May 16 announcement, Romero said her last day at the agency would be on May 31, ahead of her reported initial plans to leave if the Senate confirmed former commissioner Brian Quintenz as the new chair. Her departure will come a day after Commissioner Summer Mersinger is expected to step down to join the crypto advocacy organization the Blockchain Association as CEO.

“It has been a tremendous honor to conclude my 23 years of federal service at an agency with such an important mission to ensure that financial markets perform their critical role in the US and global economies,” said Romero.

Romero and Mersinger’s upcoming departures would leave the CFTC with only two Senate-confirmed members: acting chair Caroline Pham and Commissioner Kristin Johnson, each taking one Republican and Democratic seat, respectively. However, Pham also announced that she planned to leave after Quintenz’s confirmation. The shakeup in leadership potentially gives President Donald Trump the opportunity to pick three more commissioners after the Senate addresses Quintenz’s nomination.

Related: Former CFTC lawyer says agency should take lead on memecoin regulations

Assuming Quintenz, likely being positioned for one of the CFTC’s Republican seats, is confirmed, Trump would still be able to radically change the leadership of the commission by choosing four of the five-member panel. CFTC rules require that no more than three commissioners belong to the same political party.

Congress looking to clarify SEC, CFTC roles on crypto

The shakeup in leadership at one of the most significant US financial regulators came as lawmakers in the House were considering draft legislation that could establish a digital asset regulatory framework. The bill is expected to clarify oversight and enforcement authority of the CFTC and Securities and Exchange Commission (SEC) over many cryptocurrencies.

During her time at the commission, starting in 2022, Romero helped establish the CFTC’s Technology Advisory Committee, in part in response to addressing regulatory concerns from the crypto industry. She also supported a joint effort by US authorities against cryptocurrency exchange Binance, which resulted in a $2.7-billion settlement with the CFTC.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered

Shares of Basel Medical Group are down around 15% after the healthcare company announced plans to buy $1 billion in Bitcoin for its corporate treasury. 

On May 16, Singapore-based Basel said it was “in advanced discussions with a consortium of institutional investors and high-net-worth individuals […] to acquire a US$1 billion BTC through an innovative share-swap arrangement.

The company said the benefits of its planned purchase include creating “one of the strongest balance sheets among Asia-focused healthcare providers” and providing “unmatched financial flexibility for mergers and acquisitions.”

It also said the Bitcoin (BTC) treasury would help Basel “[e]stablish “a diversified asset base to weather market volatility.”

But the company’s shareholders weren’t sold. Basel’s stock, BMGL, has dropped around 15% on the announcement, according to data from Google Finance.

Basel Medical’s shares are down 15% intraday on May 16. Source: Google Finance

Related: Strive to become Bitcoin treasury company

Fueling acquisitions

In April, Basel announced that it had acquired a peer healthcare provider, Bethesda Medical, for an undisclosed sum.

The deal marked “the beginning of Basel Medical Group’s expansion strategy in Singapore and the broader Southeast Asian healthcare market.”

Basel’s management team expects that accumulating Bitcoin will aid in these plans. “Our expanded balance sheet will allow us to move quickly on strategic opportunities as we build a premier healthcare platform across high-growth Asian markets,” Darren Chhoa, Basel’s CEO, said in a statement. 

Bitcoin treasury metrics. Source: Bitcointreasuries.netCorporate Bitcoin treasuries

This isn’t the first time a company’s shareholders have punished it for announcing plans to build a Bitcoin treasury. 

GameStop shed nearly $3 billion in market capitalization during a single trading day in March as investors questioned the videogame retailer’s plans to stockpile Bitcoin.

“There are question marks with GameStop’s model. If bitcoin is going to be the pivot, where does that leave everything else?” Bret Kenwell, US investment analyst at eToro, told Reuters in March. 

Corporate treasuries collectively hold roughly $80 billion worth of Bitcoin as of May 16, according to data from BitcoinTreasuries.NET. 

Bitcoin can “potentially be a valuable hedge against growing fiscal deficits, currency debasement, and geopolitical risks” for corporations, asset manager Fidelity Digital Assets said in a 2024 report.

Magazine: Bitcoin’s $100K push wakes taxman, Vitalik visits real Moo Deng: Asia Express