BTC price has been extremely volatile ever since Elon Musk changed his twitter bio to Bitcoin. As soon as people saw the bio of Elon Musk, many of them jumped in to buy BTC.
BTC was trading between $30,000 and $33,000 for quite some time and was moving sideways. As soon as the world’s richest man Elon Musk added Bitcoin to his twitter bio, there was a 20% increase in BTC price and it quickly rose towards $38,000 and dropped again.
Hedge Funds are shorting BTC!
One of the reasons for the drop in BTC price was Hedge Funds. From a popular crypto news and analysis company, it has been reported that hedge funds have opened a $1billion short on BTC and are adding more shorts on every pump.
What is shorting?
When you bet against a market, it is called shorting. If you think that the price of an asset is going to go down, you open a short position and the more the price of the asset goes down, the more you will profit.
Gamestop stock story
Many hedge funds were short on Gamestop stock as well. When the rich keep getting richer and try to take advantage of a venture going out of business, it often creates a negative outlook towards the rich who are trying to take advantage of someone else’s loss. A similar situation arouse with the famous Gamestop stock. A group of reddit individual saw that hedge funds are shorting Gamestop stock. The cumulatively coordinated a counter trade by longing Gamestop with the direct intention of liquidating the short position of hedge funds.
Bitcoin v/s Hedge Funds
A similar situation like Gamestop could happen with BTC. BTC empowers individuals to put their trust in a mathematical code which cannot be manipulated rather than in the government. They retail investors could once again to try to liquidate the $1 billion short on BTC by hedge funds. If this happens, that would drive the price of BTC towards a new all time high.
Unlike Gamestop, BTC has strong fundamentals and a potential to bring a revolutionary change towards our financial system. The rewards for investing in BTC have been huge and they continue to grow so more and more new investors are resorting to this asset. Having BTC in your portfolio is a must!
New BTC cannot be printed unlike FIAT currencies. The supply of BTC is fixed at 21 million BTC. No one can manipulate this supply. Fixed supply + increased demand = exponential rise.
If retail investors decide to go against these hedge funds shorting BTC, it would be yet another nightmare for the hedge funds!!!
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