Bitcoin Price Action: The Market Dip, the Bitcoin Whale and Crypto’s Future
In today's cryptocurrency market slide, a futures trader is playing the role, because bitcoin (BTC) has dropped 7% to almost $ 7,000, pulling some altcoins into two points loss.
The Hong Kong-based OkeX, which is the world's second largest cryptokurcity exchange trading volume, said it had to be forced to cover a business when an unknown futures trader, who had bettered Bitcoin incorrectly, the price of bidcoin down Unable to cover losses on fall.
The huge long standing position of approximately US $ 416 million was compelled on July 31. At that time, OkeEx issued a statement that due to the large size of the order, their risk management system could trigger "social loss risk management system". "
Under the risk management system, beneficial futures traders (aka counterparty) are forced to leave about 18% of their earnings to cover the loss caused by the investors, who have done heavy business.
Reads the statement from OKEx,
"When the insurance fund can not cover the total margin call loss, then there is a full account clown 1. In such a case, only those users who have a net profit in the three contracts for that week will be subject to the cloak We will take part in the same percentage of profits from all the beneficial traders only to cover the difference between the beneficial value and the settlement value. "
Clawks, which plunge into the pocket of futures traders, the computational assumptions of bittoine and cryptocurrency are considered to be fast, loose and unstable. Due to lack of regulation of investors, some extent wild price is getting whipsawed by action. When a cryptocurrency exchange allows the customer to take advantage of its position up to 20x, it creates a scenario that separates other customers from security when another investor's big business goes wrong.
Okex said, "Our risk management team immediately contacted the customer, many times the client requested partial closure to reduce total market risk." "However, the customer refused to cooperate, which has led to our decision to deposit the customer's account in order to prevent further increase in the situation. Shortly after this preemptive action, unfortunately, the BTC The price fell, which led to the liquidation of the account. "- OKex
Cryptocurrency Investor and Business Hack, ICO scam and poster child for manipulation also has been there. These valid issues can normally be used as ammunition against bittoine and cryptocourrency. Opponents can say that the market is volatile and bad for consumers, and price volatility Bitcoin and its cousins make a very bad choice for money.
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But these issues are market operations that do not talk with the underlying technique. And these market shock companies are not preventing the launch of crypto initiatives. The parent company of the New York Stock Exchange InterContinental Exchange, as well as the mainstream news outlet Thomas Reuters and the Institute of Banking Native Northern Trust, are developing platforms to expand purchase, sales, expenditure, investigation and investment options in Cryptocarcensi.
These companies are analyzing the basic principles and plans for the future. They also understand that the concept of money and money are social structures, subject to change and technical forces. His decision to invest in initiatives related to Bitcoin is a strong indicator that cryptrocrasion appeals to a major segment - digital consumers, which are mobile-friendly. They are largely Millennial, not conventional consumers who are 50 years old and above. They use Amazon Prime and iPhones and tablets. They are the most likely consumers to use bitcoins to load on their smartphones and use crypto to improve the entire financial industry - likewise they used the MP3 to change the music industry and adopt Netflix to change the television industry.
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