$116 Million Liquidated Shorts and Counting. REKT!
Like the stock market, crypto is a zero sum game. For every seller, there is a buyer. For every buyer, there is a seller. The assets are unstable, liable to boom or bust on a dime. Gambling with margin calls is even worse.
For every increase in price, there is someone that has lost. Price increase is a result of buying power overcoming selling power, so more people are buying, willing to buy at an increasing price. This move the price upwards. The loser here could be the seller, if the price continues increasing that “prices them out”, or, leaves them unable to re-enter the market without losing a significant percent on their investment returns. Or, the loser could be the buyer, should the price of the asset fall majestically from what was, once previously, a moon mission.
In the latest jump of BTC, about $116 million was liquidated in shorts on BitMex alone. People expecting the recent movement to trace back bet on that assumption, on margin (multiples of the investment, no different then betting 3x that the roulette wheel will land on red). They lost, again, magnificently. Because time in the market always beats timing the market.
As always, the BitMEX cartel makes off with truckloads of money. As I’ve written about in the past, they don’t need BTC to moon. They just need fools to gamble on the price, and they can win either way. BitMex has so much capital at its disposal that they can liquidate longs or shorts at a whim. Remember, you are betting with these people, and they CAN SEE YOUR BETS. They know exactly how much money they will make if they liquidate longs/shorts, and how much it would take to move the price to do so.
A great website to show this information is Cryptometer.
$116 million dollars have been liquidated from shorts so far, and $26.7 million has been liquidated from longs. This includes both for BTC and ETH, with the real money, as always, coming from BTC movements.
Don't get rekt. Don't gamble on margin. DCA is always the safest bet.
