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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

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Bitcoin

The Bitcoin Revolution: Everything You Need To Know To Take Profits

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Bitcoin is soaring high in the cryptomarket once again, and experts are expecting a return of the bullish trend of 2017. The current Bitcoin price is $7,615 as of 23 May 6:56 AM UTC. This significant jump comes just six months after the Bitcoin price plummeted to a low of $3150 in December 2018. Since then, Bitcoin has experienced steady growth and gain in the market. However, in the last 30 days, the Bitcoin price peaked to $8,320.82, its highest price ever. This phenomenal jump occurred in a span of only 10 days breaking the Bitcoin record so far of significant gains made in short time frames. This positive growth has led to experts forecasting the Bitcoin price to hit the $20,000 mark by the end of this year.

Since entering the market almost 11 years ago, Bitcoin is still at the top of the global cryptocurrencies list. The current circulating supply of Bitcoin is at unbelievable 17,708,875 BTC. The market trend of the Bitcoin price has remained positive even when the currency did not maintain an uptrend. Cryptocurrency researchers believe that Bitcoin has the potential to grow up to a high of USD 50,000 within the next two years.

How to Profit from Bitcoin…

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Altcoins

3 Altcoins That Are Outperforming Bitcoin and Will Likely Face Consequences

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The crypto market is going through a period of massive recovery in the past few months, which has caused the investors’ optimism to return. While all eyes are on Bitcoin (BTC), as usual, the largest coin seems to be struggling with a major resistance level at $8,000 at the moment. While this level was breached a few times now, every breach resulted in a correction.

At the time of writing, BTC is approaching this level yet again, with its current price being at $7,985,79, and rising further. The price managed to grow by 1.06% in the last 24 hours, and will undoubtedly hit $8,000 in a matter of hours, if not sooner.

However, while Bitcoin continues to remain volatile and struggles with waves of growth and decline, there are some altcoins that are not following its path. Of course, most of them are performing in pretty much the same manner as BTC, as they always had. But, a few coins have actually managed to outperform Bitcoin in recent months.

While optimists believe that this might lead to decoupling from Bitcoin — something that only Binance Coin (BNB) managed to pull off up to this point — it is likely that there will be consequences for these cryptos. This likely means that a price drop for these specific coins awaits somewhere in the near future, as outperforming BTC…

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