Bitcoin Shorts Worth $34 Million Are Eliminated On Bitfinex
Someone unexpectedly closed more than 20% of all short positions on BTC for a total of $34 million on the Hong Kong-based Bitfinex exchange. This may indicate traders' uncertainty about the growth of the first cryptocurrency, ForkLog reports.
Prior to that, there were 23,000 bitcoins in shorts on Bitfinex, but on Monday, April 8, traders (or a trader) eliminated short positions for 6500 bitcoins during a small period of time.
It is noted that currently, the number of shorts is at a record low since March 2018. Then BTC fell from its historical $20,000 to $9000, but traders still maintained optimistic expectations about the growth of the cryptocurrency.
As the source stresses, such large transactions usually stimulate the surge in the bitcoin exchange rate. However, this time the first cryptocurrency even declined a bit, having lost about 1% in the last 24 hours, according to CoinMarketCap.
One explanation for the unexpected liquidation of 6500 BTC may be the fact that a hidden sell order was placed on Bitfinex, to which the price of the coin was pegged. Interestingly, at the same time, the number of long positions on the exchange has increased from 23,800 to 26,000. This may mean that a trader or a group of traders began to transfer short positions to long ones, waiting for a future bitcoin increase.
Recently, an over-the-counter platform Cumberland has received a series of orders for 1000 BTC right on the eve of the growth of the first cryptocurrency. The company completed these, after which bitcoin rose to $5000 in a day.
Earlier, the volume of transactions with bitcoin futures on the CME exchange increased by 950%.