Bitcoin Spikes Due to ‘Forced Short Squeeze’ on BitMEX

Bitcoin Spikes Due to ‘Forced Short Squeeze’ on BitMEX
August 23, 2018

 

There’s little change in the overall bearish sentiment that dominates the crypto market currently. One bright spot is that Bitcoin (BTC) continues to trade about $6,000. Notably, it spiked to $7,024 yesterday before falling back to $6,400 levels. The main reason for this was that the BitMEX exchange, which contributes nearly 40% of Bitcoin’s trading volume, went offline for scheduled maintenance. As the liquidity was less, bull operators used this opportunity to push Bitcoin higher. However, it didn’t last long as the uptrend wasn’t backed by delivery based buying, and Bitcoin (BTC) quickly retraced once BitMEX went back online.

Aside from price levels, there were a lot of notable developments in the blockchain and cryptocurrency sector in the past two days.

 

Crypto regulation & listing

One of the main issues faced by the cryptocurrency sector is that it is largely unregulated. To resolve this issue, four cryptocurrency exchanges – Bitflyer USA, Inc., Bittrex, Inc., Bitstamp, Inc., and Gemini Trust Company – have partnered to form a Virtual Commodity Association (VCA) Working Group. This association will undertake the task of setting up a crypto industry sponsored, self-regulatory organisation (SRO) to administer the cryptocurrency markets. Furthermore, the Group will work with the US CFTC (Commodity Futures Trading Commission) to counter fraud and price rigging in Bitcoin (BTC) and Ethereum (ETH). 

In addition to regulation, token listing has become one of the leading difficulties faced by various projects. There have been reports of cryptocurrency exchanges, such as Binance, demanding 100 BTC to list a token. Huobi Pro, one of the largest cryptocurrency exchanges by trading volume, has introduced a solution to this issue by launching an automated token listing service. However, to begin using it developers must submit a detailed document outlining their project.  Once this document is verified, applicants will receive a unique account number, which can be used to edit, review and amend documents related to their crypto token. The system enables DApp developers to quickly list their crypto tokens in Huobi Global or HADAX exchange operated by Huobi. 

 

Government initiatives

Industrial Research Assistance Program (IRAP), which is funded by the Canadian government, has hosted its own blockchain explorer. The deployment of a blockchain-based app on InterPlanetary File System (IPFS), enabling p2p storing and data sharing on a distributed ledger, was announced by the National Research Council of Canada (NRC), the organisation managing IRAP.

The IPFS blockchain browser was built and implemented using Catena Blockchain Suite, a product offered by BitAccess. With this implementation, IRAP will test public blockchains (Ethereum) for managing government grants. Users will also be able to perform real-time search for new grand data on the Ethereum blockchain. 

Thailand’s Central bank has officially launched a project involving R3 and eight domestic banks for the creation of a central bank digital currency (CBDC). The government backed digital currency will be used for establishing cost effective and efficient domestic wholesale funds transfers. Earlier in June, the country’s Central Bank governor Veerathai Santiprabhob revealed the blockchain initiative at an industry event in Singapore. The Project, christened Inthanon, will work towards the creation of a proof-of-concept prototype. The CBDC will be built on R3’s Corda platform and is expected to be completed in the first quarter of 2019.  The system will incorporate requisite functionalities such as a mechanism to safeguard liquidity and risk management.

 

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.

Ian Maguire

Ian Maguire

Ian is our resident contributor to the latest going ons in the cryptomarket, keeping up to date with the latest icos and coins


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