Over the last four hours, the Bitfinex crypto market has seen a substantial increase in short positions. During the time period in question, a sum of 10,000 BTC were shorted on the digital currency market, with a value of $33 million.
Whale loaning, a big proportion of its holdings on Bitfinex may be responsible for the sudden increase in short positions. As per Wu Blockchain, a whale loaned over 15,000 BTC on the platform, breaking the long-short ratio and dramatically increasing the number of short positions.
The previous Elon Musk’s trolling of Bitcoin was also thought to have affected the shorting. After his fallout a few months ago, Musk has been fascinated with firing shots at the Bitcoin community. Musk’s post is seen to have a turbulent influence on the market, and many people accuse him of purposefully influencing the digital currency market.
Previously, Musk made another shot at Bitcoin Maxis with a joke.
The leading digital currency rebounded well from its previous collapse below the crucial support level of $30,000, setting a new 5-month low, but it was unable to break through the $35k resistance level. BTC has dropped over half of its value since hitting its all-time high in April, but Bitcoin supporters like Mike Novogratz and a few others believe the market is still far from picking up speed.