A simple look to the bitcoin orderbook (https://www.bitfinex.com/pages/order_book) confirms that.
We had about 7000 bitcoins on bid orders down to 30 usd. Currently, we see 23,290 btcs.
Many lenders converted themselves into cliffdivers net. An activity suitable for risk-averse investors.
Topic: This Bitfinex Credit Bubble cannot end well - page 11. (Read 62102 times)
The interest right now is less than a lot of credit card's interest, better risk reward ratio deploying the money else where.
Yes. Won't surprise me if a lot of lenders request withdraw as the risk of putting money on exchange is high.
Won't surprise me if a lot of lenders will put their money into BTC.
The interest right now is less than a lot of credit card's interest, better risk reward ratio deploying the money else where.
Yes. Won't surprise me if a lot of lenders request withdraw as the risk of putting money on exchange is high.
The interest right now is less than a lot of credit card's interest, better risk reward ratio deploying the money else where.
The bubble deflated and the platform survived. Short interest also fall back to 6.4k BTC - reduction of about 1k BTC. I guess the number of margin-long and hodl people got wiped out. Will probably take some time before things recover.
Yeah, but if/when things recover, there's going to be another credit bubble, I guess. Why shouldn't a new bubble form as soon as the old one is "forgotten" also, new people coming in will be willing to lend some money!
IMO, once the leveraged positions have been cut down sufficiently and BTC finds a nice bottom to base from, we can finally rally -- perhaps even bubble -- and after that crash is when the leveraged longs will pile up, trying to buy up the correction. next credit bubble, please.
18 m of longs say no.
Should also check the interest rate also.
The low rate indicate it is worth the risk to long btc using leverage.
It just mitigates the risk. Usually, profitable swaps have ever-higher interest rates as price continues to move in that direction. My thinking is more so that interest rates fell so much that it made more sense to try to catch cheap coins and trade the bounces than to make peanuts lending.
WillyBTC stated it correctly the missing 10M are probably used to trade rather than lend out on peanut interest.
WillyBTC stated it correctly the missing 10M are probably used to trade rather than lend out on peanut interest.
in order to borrow people need collateral and if the los money they have less collateral so there is less demand for USD The bubble deflated and the platform survived. Short interest also fall back to 6.4k BTC - reduction of about 1k BTC. I guess the number of margin-long and hodl people got wiped out. Will probably take some time before things recover.
Yeah, but if/when things recover, there's going to be another credit bubble, I guess. Why shouldn't a new bubble form as soon as the old one is "forgotten" also, new people coming in will be willing to lend some money!
IMO, once the leveraged positions have been cut down sufficiently and BTC finds a nice bottom to base from, we can finally rally -- perhaps even bubble -- and after that crash is when the leveraged longs will pile up, trying to buy up the correction. next credit bubble, please.
18 m of longs say no.
Should also check the interest rate also.
The low rate indicate it is worth the risk to long btc using leverage.
It just mitigates the risk. Usually, profitable swaps have ever-higher interest rates as price continues to move in that direction. My thinking is more so that interest rates fell so much that it made more sense to try to catch cheap coins and trade the bounces than to make peanuts lending.
WillyBTC stated it correctly the missing 10M are probably used to trade rather than lend out on peanut interest.
The bubble deflated and the platform survived. Short interest also fall back to 6.4k BTC - reduction of about 1k BTC. I guess the number of margin-long and hodl people got wiped out. Will probably take some time before things recover.
Yeah, but if/when things recover, there's going to be another credit bubble, I guess. Why shouldn't a new bubble form as soon as the old one is "forgotten" also, new people coming in will be willing to lend some money!
IMO, once the leveraged positions have been cut down sufficiently and BTC finds a nice bottom to base from, we can finally rally -- perhaps even bubble -- and after that crash is when the leveraged longs will pile up, trying to buy up the correction. next credit bubble, please.
The bubble deflated and the platform survived. Short interest also fall back to 6.4k BTC - reduction of about 1k BTC. I guess the number of margin-long and hodl people got wiped out. Will probably take some time before things recover.
Yeah, but if/when things recover, there's going to be another credit bubble, I guess. Why shouldn't a new bubble form as soon as the old one is "forgotten" also, new people coming in will be willing to lend some money!
IMO, once the leveraged positions have been cut down sufficiently and BTC finds a nice bottom to base from, we can finally rally -- perhaps even bubble -- and after that crash is when the leveraged longs will pile up, trying to buy up the correction. next credit bubble, please.
18 m of longs say no.
Should also check the interest rate also.
The low rate indicate it is worth the risk to long btc using leverage.
It just mitigates the risk. Usually, profitable swaps have ever-higher interest rates as price continues to move in that direction. My thinking is more so that interest rates fell so much that it made more sense to try to catch cheap coins and trade the bounces than to make peanuts lending.
18 m of longs say no.
Should also check the interest rate also.
The low rate indicate it is worth the risk to long btc using leverage.
The bubble deflated and the platform survived. Short interest also fall back to 6.4k BTC - reduction of about 1k BTC. I guess the number of margin-long and hodl people got wiped out. Will probably take some time before things recover.
Yeah, but if/when things recover, there's going to be another credit bubble, I guess. Why shouldn't a new bubble form as soon as the old one is "forgotten" also, new people coming in will be willing to lend some money!
IMO, once the leveraged positions have been cut down sufficiently and BTC finds a nice bottom to base from, we can finally rally -- perhaps even bubble -- and after that crash is when the leveraged longs will pile up, trying to buy up the correction. next credit bubble, please.
Hasn't this exact thing already happened?
all of this has happened before and will happen again
maybe... lol
18 m of longs say no.
The bubble deflated and the platform survived. Short interest also fall back to 6.4k BTC - reduction of about 1k BTC. I guess the number of margin-long and hodl people got wiped out. Will probably take some time before things recover.
Yeah, but if/when things recover, there's going to be another credit bubble, I guess. Why shouldn't a new bubble form as soon as the old one is "forgotten" also, new people coming in will be willing to lend some money!
IMO, once the leveraged positions have been cut down sufficiently and BTC finds a nice bottom to base from, we can finally rally -- perhaps even bubble -- and after that crash is when the leveraged longs will pile up, trying to buy up the correction. next credit bubble, please.
Hasn't this exact thing already happened?
The bubble deflated and the platform survived. Short interest also fall back to 6.4k BTC - reduction of about 1k BTC. I guess the number of margin-long and hodl people got wiped out. Will probably take some time before things recover.
Yeah, but if/when things recover, there's going to be another credit bubble, I guess. Why shouldn't a new bubble form as soon as the old one is "forgotten" also, new people coming in will be willing to lend some money!
IMO, once the leveraged positions have been cut down sufficiently and BTC finds a nice bottom to base from, we can finally rally -- perhaps even bubble -- and after that crash is when the leveraged longs will pile up, trying to buy up the correction. next credit bubble, please.
The bubble deflated and the platform survived. Short interest also fall back to 6.4k BTC - reduction of about 1k BTC. I guess the number of margin-long and hodl people got wiped out. Will probably take some time before things recover.
Yeah, but if/when things recover, there's going to be another credit bubble, I guess. Why shouldn't a new bubble form as soon as the old one is "forgotten" also, new people coming in will be willing to lend some money!
The first low at 451 and then at 443 didn't trigger a real crash. BTC-e went down to about 310.
This seems to confirm that Bitfinex changed the way liquidations happen. Some reports suggest that they have a gradual system on line, that just dumps a part of the coins at once and the rest later. Waiting in order to allow new bid orders.
This post suggests this system it's automatic: http://www.reddit.com/r/BitcoinMarkets/comments/2dohjg/im_josh_rossi_from_bitfinex_here_to_talk_about/, even if talks about another issue, the limits on traders orders. But it has its risks. It means Bitfinex won't create a crash on its own. But on a general crash, any waiting might mean selling even lower, because new bid orders won't show up, rather all of them will be use by bulls in panic dumping their bitcoins in order to avoid liquidation.
But, for now, Bitfinex handled this well. The crazy bulls were burned, but they received plenty of warnings.
This seems to confirm that Bitfinex changed the way liquidations happen. Some reports suggest that they have a gradual system on line, that just dumps a part of the coins at once and the rest later. Waiting in order to allow new bid orders.
This post suggests this system it's automatic: http://www.reddit.com/r/BitcoinMarkets/comments/2dohjg/im_josh_rossi_from_bitfinex_here_to_talk_about/, even if talks about another issue, the limits on traders orders. But it has its risks. It means Bitfinex won't create a crash on its own. But on a general crash, any waiting might mean selling even lower, because new bid orders won't show up, rather all of them will be use by bulls in panic dumping their bitcoins in order to avoid liquidation.
But, for now, Bitfinex handled this well. The crazy bulls were burned, but they received plenty of warnings.
Nothing wrong with a few million leaving Bitfinex. That should raise the rates a bit for those lenders who stay, or result in more people going long or at least placing low bids.
The bubble deflated and the platform survived. Short interest also fall back to 6.4k BTC - reduction of about 1k BTC. I guess the number of margin-long and hodl people got wiped out. Will probably take some time before things recover.
Yeah, but if/when things recover, there's going to be another credit bubble, I guess. Why shouldn't a new bubble form as soon as the old one is "forgotten" also, new people coming in will be willing to lend some money!
Need a new bubble soon or there will be huge outflow of money. Lenders are not going to put their money on the exchange for long for pitiful yield.
The bubble deflated and the platform survived. Short interest also fall back to 6.4k BTC - reduction of about 1k BTC. I guess the number of margin-long and hodl people got wiped out. Will probably take some time before things recover.
Yeah, but if/when things recover, there's going to be another credit bubble, I guess. Why shouldn't a new bubble form as soon as the old one is "forgotten" also, new people coming in will be willing to lend some money!
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