Over 20,000 BTC worth ~$55 Million Short Positions Opened On Bitfinex!
In the past 2 days, over 20,000 BTC ($55M) in shorts on #bitcoin have been opened on BTC/USD over @Bitfinex. Traders hedging into August 1?
Found on: https://twitter.com
In the past 2 days, over 20,000 BTC ($55M) in shorts on #bitcoin have been opened on BTC/USD over @Bitfinex. Traders hedging into August 1?
Found on: https://twitter.com
I think it is more trading than hedging. On the first of August, BCC will split off BTC and so will the value. When before the split BTC is 2800 USD and BCC splits off with a value of 400 USD, the theoretical price of BTC will go down to 2400.
Seems like a sure bet in short term (maybe only minutes or hours), but I think very risky for a longer term. When people dump their BCC and the price of BTC rises, money waiting along the sidelines might flow in........
Agreed, it is insanely profitable short term, I was able to day trade BCC for 1 hour and made 1 BTC in profit, was very tempted to keep going but I decided to stop before I would regret it. I'm semi regretting pulling out that early as the price has continued to grow since then.
Part of me is starting to think that BCC will end up gaining some serious traction if it continues to experience massive value growth. I'm inclined to think this way simply because if it becomes valuable enough and can recover from any big dips in price, what reason would there be for people NOT to mine it. If it's performing well, and has good value it would attract people to start mining it.
That's not it, they were buying their own short positions with cash to pull free bch and then they withdrew their btc to private wallet to leave the rest of the people on bitfinex to pick up the loss, I think they ended up getting .3 bch per bitcoin http://hackingdistributed.com/2017/07/29/bitcoin-impending-accounting-disaster/
I think it was a lot of people hedging their money into alt coins before the fork occurred. You'll notice that during that time period, altcoin prices were also experiencing significant growth which to me suggested that people were hedging their money into altcoins.
However at the same time I think it also in part caused by people sending BTC so they could acquire the free BCC, and dump it when trading was first opened post-fork.