Bitcoin has grown this week and has risen after Tesla
TSLA
Musk pushed the price of bitcoin down as it lasted a long battle between bullish retailers organized through Reddit’s WallStreetBets forum and Wall Street hedge funds that had long since reached their climax the actions of GameStop, with regulators and brokers trying to calm the frantic markets with delivered restrictions.
Ara, the data have revealed hedge funds are short bitcoins for more than $ 1 billion, even when retailers stack up on bitcoins and other cryptocurrencies.
Traders on the Reddit WallStreetBets forum have raised the price of GameStop shares in recent weeks. … [+]
STRF / STAR MAX / IPx
Hedging funds have been increasing their short positions in bitcoins, effectively betting on lowering the price of an asset, since the price of bitcoin began to rise in October, according to company data. analysis and cryptography The Block
The net short position in bitcoin futures is now the largest it has ever been, according to the latest CFTC Traders in Financial Futures report.
The price of bitcoin has skyrocketed by about 200% since October, rising to more than $ 40,000 per bitcoin before falling slightly. The concentration of bitcoin bowling has been largely caused by institutional investors who are warming up to cryptocurrency and payment giants like PayPal
PYPL
PYPL
adding their support, although fears have appeared in the bubbles.
As hedge funds are increasingly betting on the price of bitcoin, to some extent covering their long positions, app-boosted retailers and bored by blockchains speculate on bitcoin and everything else.
“Being trapped at home due to pandemic blockages and restrictions appears to have driven an influx of day traders,” Frédérique Carrier, head of investment strategy at RBC Wealth Management, wrote in a note.
“Investors’ attitudes are shaped by gains in securities from some high-profile issues. For example, the 35% gain obtained by Bitcoin in the first nine days of 2021, after a March five price multiplication in December 2020, or more than six times the increase in GameStop shares in less than two weeks until January 26, or even Tesla, now the fifth largest stock in the S&P 500 by market capitalization, with a market capitalization higher than that of the major American, European and Japanese Automobile Manufacturers combined ”.
Hedge funds have been shortening more and more bitcoins since the price of bitcoin began to rise … [+]
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EToro brokerage, after adding 5 million users throughout 2020, recorded 1 million more in the first month of 2021, suggesting that demand for equity and cryptocurrency trading continues to grow among causal investors.
Meanwhile, many members of the bitcoin and cryptocurrency community have rushed to encourage the idea that retailers frustrated by the restrictions should resort to crypto.
“With Robinhood stopping trading on certain assets like GameStop and Adena Friedman, president and CEO of Nokia and Nasdaq, calling for regulations to prevent retail investors from coordinating on social media, the case for cryptocurrencies only gets stronger” , said Nicholas Pelecanos, head of trading platform blockchain NEM, said in comments sent by email. “I think we will see a new wave of investors coming in on bitcoins and other major cryptocurrencies as a result of this debacle.”