On 19th July, during an interview with CNBC, the CEO of BitMEX, Arthur Hayes stated that there was a liquidation of approximately $230 million worth short positions.
According to Hayes, the liquidation happened 15 minutes after Bitcoin [BTC]’s price pumped from $6800 to $7250 witnessing approximately $450 rise. He further adds that since BitMex is a futures market, for every long there is a short because of which there is no imbalance of shorts.
The founder of BitMEX said:
“Many people probably entered the position [short] around the same level which is why we probably got a little pop there.”
Usually, short-sellers are the traders who sell borrowed cryptocurrency when the price is high and buy them back when the price is low, thus, profiting even when the market is in the bull’s grip. BitMEX is one of the platforms which provides leverage to the short-sellers. The short-sellers would lose 10x of their leverage if the market goes on a bull run instead of falling in the bear’s grip.
Hayes adds that Bitcoin has not seen the worst for this year yet. He considers the current volume to be good and that the price would go up by $9000 and probably reach close to $10000. Even last spring, the price spiked from $5800 to $9000 but crashed down before cracking the $10000 mark. Arthur expects a similar action to take place this time as well and expects the price drop to $5000.
Moreover, the crypto-market volatility is the most sought by the trader and the most beneficial for the platform. According to Hayes, it is going to be back in course again in the 3rd and 4th quarter.
Arthur was further questioned about the customers trading on BitMEX and if they are witnessing any change with it since the U.S citizens can’t trade on the exchange platform. To which, he replied that the majority of the customers are from North Asia, the place where the Internet and mobile penetrated the market and now is the ground for digital currencies. In addition, the largest exchanges in the world by trading volume are in North Asia.
Moreover, in 2018, BitMEX has expanded their share and was at its peak in the month of March. This is the opposite for spot exchanges as they do not have any leverage. The peak volume for these exchanges was in the month of December and at present, they are seeing a slight peak back and the volumes are assured to increase if the prices keep going on an upward trend.
The CEO of the largest exchange platform also expects the price of Bitcoin [BTC] to go up to $50000 at the end of the year. He said:
“I think the current rally will top out close to but not greater than $10000. Then we will fall and test $5000. If that holds then we can rally to $50000 by the year end.”
SiLo, a crypto-enthusiast says:
“Let’s be honest if the owner of BitMEX says we’re going down to 5k at some point this year then we probably will, my guess is end of Q3 in September”
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