Bitcoin Cash Futures Trader, Biggest Loss in 2 Years | CoinDesk JAPAN | Coin Desk Japan

Coinalyze data shows that traders betting on Bitcoin Cash (BCH), which surged into the $320s last week, lost the most in two years.

BCH futures have lost more than $25 million in short and long combined, which may have contributed to the surge. Short refers to betting that any asset will fall, while long refers to betting that its price will rise.

(Coinalyze)

As of July 3, all exchanges listing BCH futures had negative funding rates. A negative funding rate indicates that short traders are dominating and willing to pay long traders to maintain their positions.

BCH traders are paying the exchange a funding rate of -0.05% every 8 hours, suggesting short-term interest rates on the token are rising.

Liquidation refers to the forced closing of a trader’s leveraged position by an exchange due to the loss of some or all of the trader’s initial margin. This happens when a trader is unable to meet the margin requirements of a leveraged position (not having enough funds to continue trading).

Large liquidations can mark local peaks or troughs of sharp price action, and traders can take positions accordingly.

Last week’s move boosted BCH trading volume on a South Korean exchange known for its irrational euphoria. This means that EDX Markets, a new exchange backed by traditional financial giants Fidelity Digital Assets, Charles Schwab, and Citadel Securities, will invest in Bitcoin (BTC), Bitcoin (BTC), It seems to be due to the support of BCH along with Ethereum (ETH) and Litecoin (LTC).

｜Translation: CoinDesk JAPAN
｜Editing: Toshihiko Inoue
| Image: Coinalyze
｜Original: Bitcoin Cash Futures Traders Lose Most in 2 Years as Prices Spike to $320