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Is Shorting Bitcoin (BTC) on BitMEX Hurting The Entire Crypto Market? - Global Coin Report
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Is Shorting Bitcoin (BTC) on BitMEX Hurting The Entire Crypto Market?

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The crypto exchange known as BitMEX has on two occasions traded over 1 Million Bitcoin (BTC) in a single day. The first time BitMEX made this milestone was on the 25th of July and they made the announcement via Twitter as follows:

This feat was again repeated on the 8th of August when the exchange once again traded over 1 Million BTC in a single day. This was after the SEC delayed their decision on a Bitcoin ETF. A screenshot of the daily volume on that day can be found below.

BitMEX 1 Million BTC trade volume. Source, coinmarketcap.com

The CEO and Co-founder of BitMEX, Arthur Hayes had this to say with regards to the 1 Million BTC milestone when it was reached for the second time:

“Once again meeting our own record of 1 million bitcoin traded within 24 hours is a major milestone for the crypto-coin market and testament to the strong community BitMEX is growing. In continuously engaging with, and truly listening to, the needs our customers, we’ve recognized an overwhelming demand for innovative financial products that give the crypto market greater versatility.”

So how is BitMEX doing 1 Million BTC trades in a day

Further dissecting Mr. Hayes last comment above, we find that the exchange has been offering innovative financial products that give the crypto market greater versatility. This includes products that short Bitcoin. Shorting involves the betting on the fact the price of an asset will continue to decline in a bear market. Rather than trading on an up-trend, you short your position and hope it continues to decline, thus profiting from it.

Further researching on the two dates that BitMEX experienced the 1 Million BTC trades (July 25th and 8th of August), we find that Bitcoin was going through phases of decline in the markets. Therefore, the big question is, is BitMEX to blame for the declining value of Bitcoin or are savvy traders making good use of their shorting capability?

The latter is a more plausible reason as to why BitMEX is trading such a high amount of BTC in a single day. What possibly happens during periods of Bitcoin decline, the majority of the crypto-communities communicate via Telegram and they all head to BitMEX to short Bitcoin en masse. There are plenty of chat groups and channels that advice traders on when it is the best time to short BTC.

Therefore, BitMEX is only providing versatile investment products that hinge on the decline of digital assets. Perhaps it is time we all learned how to short our favorite coins during periods of turmoil so we can also benefit.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Why Bitcoin (BTC) Revival is Likely to Continue

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The cryptocurrency market has been doing rather well in 2019 — certainly much better than in 2018. More than a year ago, the market crashed from its all-time high, and in the months that followed, it lost over 80% of its market cap. Bitcoin (BTC), as the leading digital currency, also dropped from $20,000 per coin to barely $3,200 in 2018.

These days, however, the situation seems to be turning, with digital currencies seeing significant growth in prices ever since mid-February. While January stopped the drops, February is the month when the market once again started seeing gains, and this kind of behavior has continued to this day. But, what does this mean for the future? Is this a passing trend, or is the crypto winter truly over?

The revival of Bitcoin

Questions such as the short-term future of Bitcoin are on many traders’ and investors’ minds right now and have been ever since the prices started growing again. A well-known Futures Now trader, Jim Iuorio, recently stated that Bitcoin would start seeing massive profits if it surpasses the price of $4,045. That was, of course, before the coin surged by around $1000 in the last week.

However, Iuorio’s prediction was that BTC is unlikely to go below $3,820, while the growth beyond $4,045 would mean massive gains for those involved with the industry. Soon after this prediction…

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How to Become a Millionaire without Risking Everything with Bitcoin

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It’s been well over a year since the crypto market reached its peak and then crashed, dropping to such lows that most of the coins lost anywhere between 80% and 95% of their value. A few of them lost even more. Of course, this was not enough to eradicate the crypto market, and the bulls are still as optimistic as ever, especially these days, when Bitcoin price surges again, taking the rest of the market with it.

Some predictions claim that Bitcoin will reach its own glory days within a year or two, and there are even speculations that the largest cryptocurrency might spike up to $100,000 per coin. One claim from last week even sees BTC hitting $400,000, as the highest price which someone was brave enough to predict.

While it is certainly possible — at this point, pretty much anything is — not everyone is willing to take such a gamble and invest their hard-earned money into a risky asset such as digital currencies. With that in mind, here are three alternatives that are considerably safer than Bitcoin and the altcoins.

1. Investing and re-investing in stocks

A lot of people — especially younger generations — find stocks to be incredibly boring. Most of the time, all you do is invest, and use the returns for re-investing in high-yielding shares. However, while boring will not…

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The Best Time to Buy Bitcoin (BTC) Approaches

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Ever since 2019 started, the bear market of 2018 has been losing momentum, with the bulls emerging numerous times in short intervals. This was the beginning of a crypto recovery, which still has quite a long way to go.

However, last week, Bitcoin saw massive growth in transactions, reaching a 14-month high. These were the levels that were previously seen back in 2017, as BTC approached its highest point in terms of price. The growth also reflected strongly on BTC price, which spiked yesterday from around $4.100 to the current $4,672.

Meanwhile, Bitcoin market cap followed as well, currently sitting above $82.3 billion, while the trading volume exceeded $14.5 billion.

What caused the growth?

While this is an exceptional growth, and potentially a start of the bull run that everyone was waiting for, it did not come without a cause. One of the reasons why BTC surged was last week’s Weiss Ratings report of multiple different cryptocurrencies. The report’s authors even stated themselves that the best time to invest might be very near at this point.

Weiss Ratings has done reports about specific coins in the past as well, and this time, they noticed a significant improvement in coins’ performance. The report mentions growth in user transaction volume, network capacity, as well as network security, which the authors took as an improvement coming from the evolution of the…

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