Viewpoint: The bottom may be here. Lending data shows that whales are more willing to "borrow money to buy the dips at the bottom" than retail investors

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According to the analysis of Followin KOL Benson Sun, he has a way to judge the market bottom, that is, the trend of Bitfinex USD lending rate and Binance USDT lending rate. According to him, the Bitfinex USD lending rate curve crosses the Binance USDT lending rate curve, which represents the bottom of the market, for the following reasons:

Binance USDT interest rate can be regarded as a sentiment indicator of Binance users' spot leverage. When the market is significantly corrected, fewer people are willing to borrow money to open leverage, and the interest rate will also decline. However, there are very few retail investors on Bitfinex, and only whale can shake the interest rate market in a short period of time. If the Bitfinex USD interest rate rises rapidly in a short period of time, it is often a symbol of whale borrowing money to buy the dips at the bottom. Therefore, when the Bitfinex USD lending rate curve crosses the Binance USDT lending rate curve, it means that whales are more willing to borrow money to buy the dips than retail investors, which may be the bottom of the market.

"After the big drop on April 14, we have entered the golden cross stage again. The objective data is here, and it depends on everyone how to interpret and operate it, " he said.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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