A roller coaster week for Bitcoin. An absolute rollercoaster week for BTCUSD. After a ~10% rally to above 10k, we saw a much bigger dump just 12 hours later. This is what we call “Bart” action often driven by manipulation. For BitMEX alone, ~$200m in positions were liquidated (up + down).
Worth noting that during the dump, BitMEX was trading significantly lower at sub 9k; this is another data point that shows insufficient liquidity. We saw a similar occurrence during the infamous ‘Black Thursday’ collapse.
Manipulation is one of the many hurdles that keeps traditional funds away from the space. This basically goes hand in hand with 1) regulatory uncertainty, 2) security of assets. As a fund manager, before using any exchange or custodian, there are many questions to ask:
- Is the platform insured? What type of accidents are covered?
- What happens if the platform goes bust?
- Are my funds being used for any other purposes?
On a +ve note, hashrate is ticking up as mining difficulty is adjusted down another 9%. While Jun is typically a strong month for BTC, I’d be cautious to chase given the current level of open interest on both futures and options. There’ll be a significant # of option contracts expiring on Jun 26.
– Coincheck suffers data breach
– Grayscale adds another 6800 BTC last week
– Bitmain launches a cheaper version of Antminer S19
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