Published: Aug 16, 2018 12:01 p.m. ET In the midst of a bear market, volumes betting against bitcoin have doubled this month Betting on bitcoin isn’t for everyone. However, according to data from a leading cryptocurrency exchange, interest in betting against the worlds biggest digital currency is growing.
Bitfinex, the fourth largest cryptocurrency exchange with 24-hour volume of $614.8 million, has seen the number of bets against bitcoin
double since the beginning of August as bears sought to pounce on the declining value of virtual currencies. The outstanding short interest on the Bitfinex exchange has risen from below 18,000 BTC on Aug.
1, to more than 36,000 BTC as at Aug. 15.
Short sales are placed through borrowed funds from its peer-to-peer funding and lending market, according to Kasper Rasmussen, head of marketing at Bitfinex. “In a typical ‘long sale’ of bitcoin, the seller enters into a regular spot trade of bitcoin and settles the transaction by delivering bitcoin that she owns outright.
In a ‘short sale’ of bitcoin, the seller also enters into a regular spot sale of bitcoin except that the transaction is settled by delivering bitcoin that she has borrowed,” the company explains on its website. Clients are not permitted to borrow more than 70% of the bitcoins sold in a short sale. Read more from marketwatch.com…
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