Bitcoin price drops to a two-month low — Did pro traders benefit?
Theres a typical belief among cryptocurrency traders that whales and market makers have an edge in forecasting substantial cost shifts and that this allows them to get the upper hand over retail traders. On the other hand, traders who obtain Bitcoin (BTC) use the coins as security for short positions, suggesting a bet on price decline.Bitfinex margin traders are known for quickly establishing position agreements of 10,000 BTC or higher, underscoring the participation of whales and considerable arbitrage desks.As depicted in the chart below, the Bitfinex margin long position on Aug. 15 stood at 94,240 BTC, nearing its greatest point in 4 months. This details supports the argument that professional traders were unprepared for any form of negative rate movement.Futures long-to-short information shows traders were unprepared The net long-to-short ratio of the leading traders leaves out external factors that may have specifically influenced the margin markets. By consolidating positions throughout perpetual and quarterly futures contracts, a clearer insight can be acquired into whether professional traders are leaning towards a bullish or bearish stance.Occasional methodological disparities amongst different exchanges exist, prompting viewers to track changes rather than focus on outright values.Exchanges top traders Bitcoin long-to-short ratio.
The cost of Bitcoin fell by 11.5% from Aug. 16 to Aug. 18, leading to $900 million worth of long positions being liquidated and causing the cost to strike a two-month low. Before the drop, lots of traders anticipated a breakout in volatility that would press the price up, however that was undoubtedly not the case. With the considerable liquidations, its essential to deal with whether professional traders gained from the cost crash.Bitcoin just saw one of its biggest daily liquidations by volume in history.Starting at 4:30 PM yesterday, #Bitcoin fell 7.5% in 20 MINUTES, removing $42 billion in market cap.This mass-liquidation occasion involved more outflows in 1 day than throughout the FTX collapse in November … pic.twitter.com/KmVNkXoOLw— The Kobeissi Letter (@KobeissiLetter) August 18, 2023
Theres a typical belief among cryptocurrency traders that whales and market makers have an edge in anticipating substantial rate shifts and that this enables them to acquire the upper hand over retail traders. Conversely, traders who borrow Bitcoin (BTC) utilize the coins as security for short positions, showing a bet on price decline.Bitfinex margin traders are known for swiftly developing position contracts of 10,000 BTC or greater, underscoring the involvement of whales and considerable arbitrage desks.As illustrated in the chart below, the Bitfinex margin long position on Aug. 15 stood at 94,240 BTC, nearing its highest point in 4 months. By combining positions across quarterly and perpetual futures contracts, a clearer insight can be acquired into whether expert traders are leaning towards a bullish or bearish stance.Occasional methodological disparities amongst different exchanges exist, triggering viewers to track changes rather than fixate on outright values.Exchanges leading traders Bitcoin long-to-short ratio.