Bitfinex to Enable Ethereum Shorting and Margin Trading
The Bitcoin exchange and trading platform, Bitfinex has included Ethereum as one of the tradable crypto-assets. Users will be able to trade ETH/BTC and ETH/USD pairs from Monday. The phenomenal rise of Ethereum in the recent months is hard to ignore. The Ethereum cryptocurrency has gained over 100 percent in the past few months, increasing its demand among the cryptocurrency community. The increasing value combined with a positive outlook for Ethereum as a cryptocurrency and a platform has certainly kindled interest among crypto-traders. Ethereum-Bitcoin and Ethereum-US dollar are widely....
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Matching our analysis, Bitcoin price plunged to near $500 BTC/USD today. That is if you were looking at the Bitstamp exchange price. BitFinex, on the other hand, saw $460 followed by a return to $500 only to slam down to $451 a few seconds later. Is this the result of some systemic error or perhaps manipulation being exercised via the BitFinex exchange? Could it be that some early adopters are cashing out, or perhaps the news? Far from it, as the following explanation will clarify. BitFinex is one of the few major exchanges that offers traders the option of margin-based trading. The others....
Coinsetter introduced new features to its Platform. Bitcoin traders are now able to use Bitcoin Margin Trading, Shorting. Costumers, now have access to 5.0x leverage and shorting with interest-free margin. This Monday, the New York-based bitcoin exchange, announced the extension of margin trading capabilities to all of its users. Coinsetter users can trade with margin by posting collateral of as low as 20% of the margin balance added to an account. Collateral can be posted entirely in bitcoin if preferred, and margined positions do not accrue interest-a feature that is unique to....
So I've been talking a lot about Bitfinex recently, since I started using it about 2 weeks ago. Up until now, I've been using a variety of exchanges including Bitstamp and BTC-E to trade my Bitcoin. I just want to point out that there is a big distinction between exchanges, and trading platforms like Bitfinex. On exchanges, all I could do was sell Bitcoin at a high, and buy them back at a low, or hold some USD in the hopes of snatching up some cheap Bitcoin. In fact, I'm sure all of you reading this have been trying to do exactly that for the last few months. If you haven't heard of Margin....
Margin Trading Was The Cause? Some theorize there are whales (people with large enough funds that they can make the market shift noticeably) who are pushing (selling lots of Bitcoins) through margin calls. Margin calls is an element of margin trading. A margin trader can deposit funds in a specified account with a related business - in this scenario, digital currency exchanges. Or specifically some have mentioned Bitfinex. Once a margin trader has deposited her or his funds they receive percent of it back as credit. For example, you deposit $5,000 in Bitcoin and you would have your account....
$726 million in Bitfinex shorts were quickly closed after Bitcoin price bounced at $30,500, leading traders to speculate whether bears have given up. On June 25, the amount of Bitcoin (BTC) margin shorts at Bitfinex increased by 22,000, equivalent to $726 million. At the time, Cointelegraph reported that there was a significant increase in Bitfinex's spot volume market share starting at 9 am UTC, matching the demand in the short margin.Data confirms that one (or more) whales actively shorted the market, betting on a price decrease. The average price of the trade was around $33,000, so....