BTC May Go Over $7,300 Mark, BTC Shorts Soar
BTC finally exceeded the $7000 benchmark after the long series of very small fluctuations around the $6500 mark last month. The credit to the now-rising BTC price can be given to BitMEX, whereas the delay of the SEC’s Cboe VanEck ETF might have been the reason behind the long wait.
The community is starting to think of a possible conspiracy when the DDoS attack hit BitMEX, forcing them to liquify their shorts on August the 22nd. Since then, the BTC price has increased over the $6500 mark, and kept rising.
On the other hand, BTC shorts have soared on September 2nd, from 22,050 to 33,276 over the course of 4 hours. Bitfinex shows the that they are currently trading at 33,000.
Short v Long
Short sellers are traders who borrow BTC from brokers at a high price, and then resell them when the price gets lower. In that sense, they can sell it back to themselves and make a profit off the dip. This is the exact opposite of what long sellers do, as they purchase BTC at the low price and then wait till the price gets higher to sell at a profit.
Short traders hold a huge risk because the market is very unstable at the moment; sometimes the price can skyrocket when the market is not that active. Still, in this case, short sellers resort to liquidating their currency and only losing what they have already earned extra.
Short selling has become a trend since the $1 billion worth of BTC that was reported to be used on the Silk Road. The Bitcoins in question are now in the process of being moved to BitMEX, Bitfinex, and Binance, so that they will be ready for sale over this week.
The BTC price at the time or writing is $7,279 at a market capitalization of over $124 billion. At the moment BTC dominates the entire market with a growing percentage of 54.1% that has been showing an increase of over 7% in only 7 days.