Everybody talks about the massive Bitcoin Whale bet having gone bad. According to Bloomberg the long bet with a notional value of more the 400 million USD was initiated last week.
The exchange where the trade was initiated writes:
“Our risk management team immediately contacted the client, requesting the client several times to partially close the positions to reduce the overall market risks,” OKEx said. “However, the client refused to cooperate, which lead to our decision of freezing the client’s account to prevent further positions increasing. Shortly after this preemptive action, unfortunately, the BTC price tumbled, causing the liquidation of the account.”
Not great news for the pro-Bitcoin ETF lobby.
Bitcoin is down some 10% from recent highs and we are close to first short-term support levels. Maybe the last retracement is just a classical margin call and the price can once again start climbing as the Whale trade has been liquidated.
A different trading style to massive long bets seems to be the strategy for Asia’s hottest crypto hedge fund FBG. Forbes writes;
FBG also has a reputation for getting in and out of investments quickly. “They’re flippers,” says Yubo Ruan, founder of Palo Alto-based 8 Decimal Capital, a rival crypto hedge fund. “Their reputation is pump and dump.”
Full article here.