10,500 BTC short position closed on Bitfinex, shorts drop nearly 40%

16 May, 2019
10,500 BTC short position closed on Bitfinex, shorts drop nearly 40%

While most traders are probably long on BTC following the recent price action, the most notable news saw a 10,500 BTC short removed from the market.

The removal of the short position saw the shorts on the order book decline by nearly 40% with no movement in price of Bitcoin following the removal. 

BTC/USD Shorts Chart provided by Tradingview

Most people were wondering why the move did not push Bitcoin to the upside following such a massive potential liquidation from the market, the 10,500 BTC totalling $85 million did not even dent the price of BTC. 

Investor and entrepreneur Alistair Milne pointed out the closed position, stating the possible reason for no movement in BTC price following the removal of the short.

It would appear that the reason the closed position had no affect on the market is because the position was claimed, Bitfinex summarizes how a position is claimed, saying "Claiming a position is essentially converting from a margin trade into an exchange trade; closing the position by buying it yourself and settling your funding costs to the lender. Because of this, there is no trade activity on the order book."

Currently, bitcoin longs on Bitfinex hold 60% while shorts are at 40% 

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Read more about: Bitfinex

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