Bitcoin’s price is at danger of falling as speculators finance short bets in the crypto by borrowing it from exchanges. Datamish demonstrates that investors are investing insufficiently, resulting in a decline in the value of Bitcoin.
Bitcoin sank further on Friday, despite a rise in money influx from institutional investors and big wallet holders. Brevan Howard Asset Management LLP and Tudor Investment Corp both increased their bitcoin holdings in their portfolios.
The escalating geopolitical tensions and the deteriorating situation in Russia-Ukraine are weighing on investor risk appetites for both stocks and cryptocurrency. This has fuelled a negative narrative about Bitcoin’s price, which has fallen below $40,000 and shows no signs of recovery.
Cryptocurrencies are not risk-free, and it seems as if even huge investors are aware of this. On March 11th, 2022, survey data from Datamish revealed that 1,500 Bitcoin had been given out as short positions to fund those risks, equating to total debt of close to 3,603 BTC. Historically, when financing for short positions has been increased, there have been unfavourable implications such as price declines.
Analysts have been closely tracking recent fluctuations in the Bitcoin price, expecting that it will continue to plummet. They feel there is still a substantial chance of a future drop, notwithstanding the market’s recent improvement.
The rebound in the Bitcoin price is being ascribed to the first bearish Ichimoku breakthrough since December 4, 2021. According to analysts, Bitcoin has established a bottom around the $38,000-$38500 zone. This is a critical confirmation zone for bitcoin trading. This might mean that investors who have been selling assets in anticipation of a collapse would suffer more losses.
Company executives and financial sources told Reuters that many Russians swamped the UAE’s cryptocurrency businesses with liquidation orders in an effort to salvage their fortunes.
That is not all they want to accomplish. Several of these investors are interested in real estate in the United Arab Emirates. While others want to convert it to fiat and conceal their funds somewhere — according to sources.
Swiss financial markets are now in disarray. Indeed, brokers sought the removal of Bitcoin worth billions of dollars. Their customers expressed anxiety that Switzerland may freeze all money. According to one official, they have received demands for up to $2 billion.
The UAE has served as a neutral ground for Russians and Belarusians who have arrived in Dubai with their money in order to avoid being left out of any future battles. There has even been discussion of individuals bringing bitcoins here since they know they would always be secure regardless of which side wins.
According to reports in the United Arab Emirates, a large number of Russians acquire real estate using cryptocurrencies. They are using digital forms of money in both directions — bringing resources into Dubai and withdrawing them from other locations.