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 every $500 difference would result in an $11 million profit or loss when closing the short position.
In the cryptocurrency world, traders tend to imagine that for some entity or group to build such a sizable position, there must be some 'inside' knowledge to protect them. However, as previously shown by Cointelegraph, the Bitfinex margin shorts from early June were underwater by $65 million when Bitcoin reached $40,400 on June 16.
Amid the ongoing transfer of mining equipment — and therefore Bitcoin hash rate — out of China, fears have emerged over miners selling BTC to cover costs and liquidations.
Given the magnitude of the geographical changes — the China rout marks the largest hash rate shake-up in history — miners could compound selling pressure by disposing of coins which may not otherwise have moved in a long time.
The combined impact of selling and reduced hash rate offers a “double whammy” for Bitcoin price action, reducing the potential for gains or even maintaining significant support levels.
For Glassnode, however, the situation appears to be already under control. Miners are in transit, it notes, and those still online face a giant windfall. This is because later this week, Bitcoin’s difficulty will drop by almost 25% — again the biggest move down ever — meaning it will be more profitable to mine Bitcoin for the remaining miners.
The cryptocurrency market found itself in a state of cautious optimism on June 28 after Bitcoin (BTC) price briefly spiked above $35,500, renewing hopes that the bull trend will resume shortly.
Despite the bullish move, some analysts have warned that the failure to secure a daily close above the $35,000 resistance is a sign that traders are simply closing positions at each breakout to resistance, a hint that further downside could be in store.
According to David Puell, on-chain analyst and creator of the Puell Multiple, the indicator has just given its fifth Bitcoin buy signal in history.
$BTC: Getting reports that the most awesomely-named indicator just gave its fifth buy signal in BTC history.
Looking good, yes, but remember that Puell Multiple reacts to hash rate movements too, and hash rate follows price, not the other way around. June 28, 2021
The Puell Multiple focuses on the supply side of the Bitcoin economy, mainly Bitcoin miners and their revenue, and explores market cycles from a mining revenue perspective. It is calculated by dividing the daily issuance value of BTC (in USD) by the 365-day moving average of daily issuance value.
This Daily Dose was brought to you by Cointelegraph.