Only Four Traders (or Less) Control 70% of all Bitcoin Short Futures Positions
A few days ago, Bitcoin successfully broke $10,000 and still went on to break $11,000 before witnessing a pullback. Even at this time, it’s set to climb back through the $11,000 mark again as it currently trades at $10,932. As with any other price surge, all the other coins are usually dragged up together with Bitcoin as even Ethereum is currently trading at $309. One more thing that happens every time there is a significant Bitcoin price surge is fear of missing out (FOMO). Bitcoin’s market cap is over $194 billion and is still expected to climb higher as people start to buy in droves due to FOMO.
In the past, the FOMO has led to a situation where the coin is ‘overbought’ and had to retrace for correction. However, another important thing to note is that traders have noticed that there is a rise in the position of Bitcoin short futures with buy orders surging significantly.
Only a Few People Control BTC Short Futures
As far as the BTC short futures positions are concerned, it would seem like the whales are in full control. It’s either this or many retail traders have begun to short so much that long exposure is significantly reduced. However, this could also lead to a price drop.
Silver Watchdog (@Silver_Watchdog) on Twitter disclosed to the Bitcoin community that:
Not only are they accumulating shorts but reducing long exposure as well. This is positioning for a price drop. pic.twitter.com/dBa7WNBYXT
— Silver Watchdog (@Silver_Watchdog) June 23, 2019
Bitfinex – Tether
There are quite a few people who believe that Bitfinex is one of the major factors responsible for the pump. Furthermore, there are those proponents who have very meticulously followed the Bitcoin market as it relates to Bitfinex say that the USDT minting from the Tether Treasury which happened recently is a strong factor to be considered in the Bitcoin surge.
However, with the legal troubles being faced by Bitfinex, Silver Watchdog calls for more effort in the detection and exposure of fraudulent crypto activities. The user thinks that not enough is being done in that department and if fraud detection is more effective, the market will be thankful for it.
“What the crypto market needs are some players like Jim Chanos or Muddy Waters to expose the frauds. Right now [there] are hardly any fraud detectors other than a few anon tweeters. Taking down Bitfinex with several exchanges would be a huge profitable play if it could be done.”
Other Suspicious Activity
Away from Bitfinex and Tether, there is also some talk concerning suspicious activity from USDC, the token launched by Coinbase and Circle’s CENTRE Consortium. Just like Tether the USDC has recently produced a very large quantity of the coin. Nevertheless, even though many people have claimed that there is some irregular activity being transacted with the coin through a few exchanges, nothing can be definitively proven.
Right now Bitcoin has increased more than 100% since April and about double of that since February.