Bitcoin prices broke through $11,000 yesterday, and the mood of FOMO (fear of missing) began to brew. The increasing number of buy orders has caused Bitcoin to be overbought, which has led to price increases. However, many people find that while the price is rising, the BTC short-term futures position is also increasing. Even more surprising is that 70% of short positions are held by only four traders.
Image source: Wikimedia Commons
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Twitter user @Silver_Watchdog said on Twitter on Sunday:
“Four or fewer traders hold nearly 70% of BTC short futures positions. (COT data).”
@Silver_Watchdog said that these traders may be "big whales" in the bitcoin market. Not only do they accumulate a lot of short positions, they are also reducing their long exposures, which may be preparing for the bitcoin price decline.
It turns out that the encryption market seems to have signs of a correction. Bitcoin has returned below $11,000, and XRP and LTC have fallen more than 5%.
However, the bulls in the market still dominate. This morning, the number of Bitfinex Bitcoin long positions is now at 26,815, a record high since February 20 this year.
Bitfinex long position
Although the rumors that Bitfinex is playing a booster role in this rally have not stopped, many investors have speculated that the 100 million USDT that Tether Treasury recently issued at Ethereum may be related to the increase in BTC prices.
@Silver_Watchdog further added:
"The encryption market needs some people like Jim Chanos or Muddy Waters to expose fraud. Now there are few organizations that expose fraud except for a few anonymous Twitter accounts. If you can, downgrade Bitfinex and a few The exchange may be a big victory."
Bitfinex and Tether may not be the only two companies that draw attention, and USDC Treasury's activities are equally noteworthy. Like Tether, USDC Treasury has also issued a large number of USDCs. However, many users and accounts that track cryptocurrencies and markets mark suspicious transactions on the exchange and ultimately cannot prove anything.
As of press time, the BTC temporarily reported $10,770, a 24-hour drop of 1.09%.