Bitcoin’s rally seems to have cooled off as the price of Bitcoin fell consistently over the past few days. The Bitcoin community on June 30 saw a massive whale claiming more than 20,000 BTC shorts, causing the ‘BTC/USD Shorts’ chart to bleed red.
The $200 million worth of shorts was recorded after massive amounts of Bitcoin were transferred from an unknown wallet to Bitfinex.
A Twitter user, @loomdart, tweeted,
looks like someone just claimed 20,000 $BTC in shorts on bitfinex… wow pic.twitter.com/QQXiZ1oaFb
— Crypto Loomdart (@loomdart) June 30, 2019
“This is why I have been saying the margin data on finex isn’t that usable in actual directional trading, its mostly hedges/non-directional plays… I’m going to start visiting everyone who says “does this mean we go up now” in response to this…. learn to read u gremlins”
The claim feature as described by Bitfinex allows “the use of funds you have in your Margin Wallet to settle a leveraged position as an exchange buy or sale. Claiming some or all of a position requires that you have enough partially realized P/L (you’ve reduced the position at a profit) and/or funds (BTC or USD) in your Margin Wallet (net of any outstanding financing charges) to satisfy some or all of the outstanding financing associated with your position.”
Some people have argued that this could affect the market in a negative way, causing Bitcoin’s price to fall. The price of Bitcoin since the same has fallen by 21%. The price of Bitcoin, at press time, was $10,996 and the coin had a market cap of $196 billion. Over a span of 24 hours BTC fell by by 7.88%, causing the rest of the market do the same. ETH was down by 6.41%, while Litecoin was down by 5.85%.
A Twitter user, @TradinTime, commented,
“The fact they can exit a short that way is questionable imo (believe only finex offers the claim option). However what do they think is incoming to want to settle or did they hope opening it would push the market but failed ????”