Traders return a $60 million lend after closing 2,743 BTC short on Bitfinex
While the quiet days in the market are still here, a large Bitcoin loan given to an anonymous trader or investor for a short has been returned to the lender, WuBlockchain reports.
Strong shorting activity
As the datamish data suggests, a total of 5,215 BTC that Bitfinex trading platform provided to traders recently has been returned to the lender. The total volume of funds borrowed decreased to 2,481 BTC, showing that market participants returned 2,734 BTC.
After supplying 5,215 BTC, traders opened a massive amount of short market orders marked as non-hedge, showing that traders were betting directly against the first cryptocurrency. In some cases, traders and investors open short orders simultaneously with long orders to hedge their positions in the event of unexpected market volatility.
Some users, including Colin Wu, suggested that a large short opening could have been a cross-platform hedge, meaning that investors opened a long position on another platform like Binance and then shorted the same asset on Bitfinex.
Movement of Bitcoin within the range
It is not yet clear why anonymous traders recalled their short orders, but it is most likely related to Bitcoin’s rebound from the lower boundary of the $36,000-$45,000 range formed since mid-February.
The first cryptocurrency is still moving in the ascending rangebound and has yet failed to break through in either direction. At press time, Bitcoin is testing the support of the rangebound and, unfortunately, dropped by approximately 2.6%, which may cause a drop below the lower border of the range.
The altcoin market is also undergoing a correction as no new purchasing power is reaching the cryptocurrency market.
