[2019-06-29] Bitmex Sees $500 Million Bitcoin Short Liquidation in 24hrs

[Jgilpulg]

The value of BTC rose to almost USD 14,000, causing short traders to liquidate over half a billion dollars in a single day.

https://bitcoinist.com/bitmex-500-million-in-bitcoin-shorts-liquidated-in-24hrs/

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[BitHodler]

It's not as bad as it looks. Arthur Hayes (CEO of BitMEX) once said that the average leverage use throughout his platform hovers around 8x. That means $500 million/8 = $62.5 million worth of actual Bitcoin shorts.

I would say that with how volatile the price has been lately that people tend to use even lower leverage counts, so it could very likely be less than $62.5 million. It's hard to say when the only volume reported is leveraged volume.

[pixie85]

That's a good point above. They shouldn't speak of leveraged investments and give fake leveraged volume because it has no meaning. What should we make of it? That this amount of vapor money was made on the server and then disappeared just for the purpose of counting how much fees should be charged on those poor souls who wanted to short an investment that every single year is at higher lows?