Bitcoin Forum
June 15, 2024, 07:12:24 PM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Margin Call in Bitcoin World  (Read 1398 times)
LiteCoinGuy (OP)
Legendary
*
Offline Offline

Activity: 1148
Merit: 1011


In Satoshi I Trust


View Profile WWW
August 16, 2014, 01:17:07 PM
 #1

Did Margin Trading Crash the Price of Bitcoin?

But while there were many theories as to what news events could have caused bitcoin’s value to fall into such a steep decline, some market observers believe that this most recent movement may have been caused not by external factors, but by the actions of bitcoin traders.

This theory, perhaps most notably posed by Raffael Danielli, posits that out-of-control margin trading caused a flash crash in at least one major bitcoin exchange market, a development that had a cascading effect across the larger bitcoin market.


http://www.coindesk.com/margin-trading-crash-price-bitcoin/


Bitfinex: cascading margin calls resulting in flash crash

Today Bitcoin prices took a dive as margin traders on one of the largest exchange Bitfinex got their orders liquidated. For many close market observers and more sophisticated traders this did not come as a surprise. In fact, long positions have been building up continuously over the last couple of months in anticipation of a new bubble in Bitcoin prices and reached as high as $30m in outstanding swap positions on Bitfinex.

http://www.matlabtrading.net/main/2014/08/14/bitfinex-margin-call-cascade-algorithm-explained/


interesting to see that there occur such events even in our little bitcoin world...but maybe bitcoin world is maturing  Smiley ? good or bad?


-LiteCoinGuy-

311
Full Member
***
Offline Offline

Activity: 230
Merit: 100

Come original.


View Profile
August 16, 2014, 01:19:52 PM
 #2

But while there were many theories as to what news events could have caused bitcoin’s value to fall into such a steep decline, some market observers believe that this most recent movement may have been caused not by external factors, but by the actions of bitcoin traders.

Isn't it always caused by bitcoin traders? The news might be from external sources but its the panic sellers and buyers that cause the crashes.
Stery
Member
**
Offline Offline

Activity: 118
Merit: 100


View Profile
August 16, 2014, 01:23:02 PM
 #3

Well the btc price is somewhere stuck in the 500 USD level mark.

Sites like OKCoin and BTC-e don't have clear answers on the margins.
pazor_true
Legendary
*
Offline Offline

Activity: 1461
Merit: 1025


i love Emerald (EMD)


View Profile
August 16, 2014, 01:24:58 PM
 #4

ethereum liquidate their presales bitcoins

BTC 12jiBjT2GSWYk2HwYdPqsQMuLqZ1br9D37 - i am Pazor
whydifficult
Sr. Member
****
Offline Offline

Activity: 287
Merit: 250



View Profile WWW
August 16, 2014, 01:36:04 PM
 #5

ethereum liquidate their presales bitcoins

nope, the coins are untouched.

Gekko a nodejs bitcoin trading bot!
Realtime Bitcoin Globe - visualizing all transactions and blocks
Tip jar (BTC): 1KyQdQ9ctjCrGjGRCWSBhPKcj5omy4gv5S
lihuajkl
Legendary
*
Offline Offline

Activity: 1596
Merit: 1000


View Profile
August 16, 2014, 02:13:25 PM
 #6

Bitstamp change its bank!
Nerazzura
Sr. Member
****
Offline Offline

Activity: 378
Merit: 250


View Profile
August 16, 2014, 03:44:40 PM
 #7

Did Margin Trading Crash the Price of Bitcoin?

But while there were many theories as to what news events could have caused bitcoin’s value to fall into such a steep decline, some market observers believe that this most recent movement may have been caused not by external factors, but by the actions of bitcoin traders.

This theory, perhaps most notably posed by Raffael Danielli, posits that out-of-control margin trading caused a flash crash in at least one major bitcoin exchange market, a development that had a cascading effect across the larger bitcoin market.


http://www.coindesk.com/margin-trading-crash-price-bitcoin/


Bitfinex: cascading margin calls resulting in flash crash

Today Bitcoin prices took a dive as margin traders on one of the largest exchange Bitfinex got their orders liquidated. For many close market observers and more sophisticated traders this did not come as a surprise. In fact, long positions have been building up continuously over the last couple of months in anticipation of a new bubble in Bitcoin prices and reached as high as $30m in outstanding swap positions on Bitfinex.

http://www.matlabtrading.net/main/2014/08/14/bitfinex-margin-call-cascade-algorithm-explained/


interesting to see that there occur such events even in our little bitcoin world...but maybe bitcoin world is maturing  Smiley ? good or bad?


-LiteCoinGuy-
Can you give an opinion or reference the experts how to order bitcoin prices back to normal.
then we can spread the info to the forums or other bitcoin group
LiteCoinGuy (OP)
Legendary
*
Offline Offline

Activity: 1148
Merit: 1011


In Satoshi I Trust


View Profile WWW
August 16, 2014, 03:56:49 PM
 #8

Bitstamp change its bank!

nobody cared about that. i doubt that this is the answer.

Sheldor333
Sr. Member
****
Offline Offline

Activity: 406
Merit: 250


View Profile
August 16, 2014, 04:30:30 PM
 #9

Check Chinese exchanges selling unbacked btc, I think you'll find your answer there. In my opinion that is what is driving the price down. It's like a lot of forged money is around and sure it will drive the price down, since there is more then should be.

odolvlobo
Legendary
*
Offline Offline

Activity: 4354
Merit: 3261



View Profile
August 16, 2014, 05:18:54 PM
 #10

This theory, perhaps most notably posed by Raffael Danielli, posits that out-of-control margin trading caused a flash crash in at least one major bitcoin exchange market, a development that had a cascading effect across the larger bitcoin market.

The person writing this article doesn't know what a "flash crash" is. I doubt the accuracy of the article.

Join an anti-signature campaign: Click ignore on the members of signature campaigns.
PGP Fingerprint: 6B6BC26599EC24EF7E29A405EAF050539D0B2925 Signing address: 13GAVJo8YaAuenj6keiEykwxWUZ7jMoSLt
ajareselde
Legendary
*
Offline Offline

Activity: 1722
Merit: 1000

Satoshi is rolling in his grave. #bitcoin


View Profile
August 16, 2014, 06:07:27 PM
 #11

Check Chinese exchanges selling unbacked btc, I think you'll find your answer there. In my opinion that is what is driving the price down. It's like a lot of forged money is around and sure it will drive the price down, since there is more then should be.

Price is also a bit controlled by large master trading accounts, and the waves dont hold for long , they are mostly short term.
I believe the manipulation wont be able to go much longer. Also its funny just how much large exchanges have controll over the price, just by their decision to keep their trading profits in bitcoin, or selling them for fiat instantly..
Beliathon
Hero Member
*****
Offline Offline

Activity: 784
Merit: 1000


https://youtu.be/PZm8TTLR2NU


View Profile WWW
August 16, 2014, 06:58:42 PM
 #12

Relax. It's all just a little bit of history repeating. See for yourself:



Remember Aaron Swartz, a 26 year old computer scientist who died defending the free flow of information.
DurbanPoison
Member
**
Offline Offline

Activity: 111
Merit: 10


View Profile
August 16, 2014, 08:44:09 PM
 #13

Margin trading on Bitfinex is certainly the most likely cause for the recent decline. I hope Bitcoin doesn't go the way of wall street full of highly leveraged trading and high frequency algorithms.
gogxmagog
Legendary
*
Offline Offline

Activity: 1456
Merit: 1010

Ad maiora!


View Profile
August 16, 2014, 11:13:14 PM
 #14

I fear that it will. Greed and a highly unregulated market are a dangerous mix. It would be a shame to see btc ruined this way.
Beliathon
Hero Member
*****
Offline Offline

Activity: 784
Merit: 1000


https://youtu.be/PZm8TTLR2NU


View Profile WWW
August 16, 2014, 11:18:05 PM
 #15

I fear that it will. Greed and a highly unregulated market are a dangerous mix. It would be a shame to see btc ruined this way.
The difference is bitcoin is global, tradable by anyone with a computer or even DUMB cell phone. It doesn't really matter here, it doesn't cause major economic damage the way derivatives trading does.

Remember Aaron Swartz, a 26 year old computer scientist who died defending the free flow of information.
zedicus
Legendary
*
Offline Offline

Activity: 966
Merit: 1004

CryptoTalk.Org - Get Paid for every Post!


View Profile WWW
August 16, 2014, 11:47:52 PM
 #16

Check Chinese exchanges selling unbacked btc, I think you'll find your answer there. In my opinion that is what is driving the price down. It's like a lot of forged money is around and sure it will drive the price down, since there is more then should be.
I think panic selling by people on Chinese exchanges realizing that their bitcoin in their account is not backed by anything would cause a much larger drop in price. Look at what happened on Gox when it was clear that they did not have BTC to back their trading positions; the price fell as low as ~150/BTC when other exchanges were trading ~700-800/btc. If this was panic selling like this then we would see a much larger drop (IMO) and there would be a much larger divergence in the prices on various exchanges.

 
                                . ██████████.
                              .████████████████.
                           .██████████████████████.
                        -█████████████████████████████
                     .██████████████████████████████████.
                  -█████████████████████████████████████████
               -███████████████████████████████████████████████
           .-█████████████████████████████████████████████████████.
        .████████████████████████████████████████████████████████████
       .██████████████████████████████████████████████████████████████.
       .██████████████████████████████████████████████████████████████.
       ..████████████████████████████████████████████████████████████..
       .   .██████████████████████████████████████████████████████.
       .      .████████████████████████████████████████████████.

       .       .██████████████████████████████████████████████
       .    ██████████████████████████████████████████████████████
       .█████████████████████████████████████████████████████████████.
        .███████████████████████████████████████████████████████████
           .█████████████████████████████████████████████████████
              .████████████████████████████████████████████████
                   ████████████████████████████████████████
                      ██████████████████████████████████
                          ██████████████████████████
                             ████████████████████
                               ████████████████
                                   █████████
.CryptoTalk.org.|.MAKE POSTS AND EARN BTC!.🏆
KeyserSozeMC
Hero Member
*****
Offline Offline

Activity: 742
Merit: 500


I'm dying.


View Profile WWW
August 17, 2014, 04:29:24 AM
 #17

How about we call it Summer Effect?

Hey, smexy. Don't waste your time. Time's precious.
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!