It did decrease substantially (by 50%) in February. It just seems that whenever that happens, people take the longs back up pretty quickly.
I don't know if Bitfinex's data is real; I'm just assuming it is (same as any other exchange's data) for now.
Topic: This Bitfinex Credit Bubble cannot end well - page 39. (Read 62099 times)
They will rollback the trades and everything will be just fine, no need to worry so much about cascade.
This is only true if the price on other markets returns to the point prior to when the cascade went off. If there is a differential, then that portion of liquidated traders will lose. 
They will rollback the trades and everything will be just fine, no need to worry so much about cascade.
The price on Bitfinex peaked on 4th December at 1175 USD (BitcoinWisdom). On that day, USD loans on the site were 6.8 million (bfxdata.com)
Ever since, the USD loans have ballooned up to ever increasing alltime highs while the price corrected, building an immense negative divergence that is still ongoing today: We now have 26.4 million USD in loans with a price of ~575. So the ratio once used to be 5787, and today it is 45913, constituting is a near nine-fold increase. It is true that Bitfinex has gained market share since then, but not by this big a factor, as is evidenced by only up to a ~2x increase in BTC loans as well as comparative exchange data over the past 6 months: http://data.bitcoinity.org/markets/volume/6m/USD?c=e&t=a&volume_unit=btc
Visualization (for some reason it does not include the actual price top that happened in December):
And here is what happened the last time around on Bitfinex when things went kaboom in a liquidation cascade (1 min intraday chart from Feb 10):
http://bitcoincharts.com/charts/bitfinexUSD#rg180zig1-minzczsg2014-02-10zeg2014-02-10ztgSzm1g200zm2g25zxzi1gVolzl
What on earth are these overleveraged maniacs doing? Are they waiting for the bubble messiah and not willing to deleverage, no matter what happens?!
Ever since, the USD loans have ballooned up to ever increasing alltime highs while the price corrected, building an immense negative divergence that is still ongoing today: We now have 26.4 million USD in loans with a price of ~575. So the ratio once used to be 5787, and today it is 45913, constituting is a near nine-fold increase. It is true that Bitfinex has gained market share since then, but not by this big a factor, as is evidenced by only up to a ~2x increase in BTC loans as well as comparative exchange data over the past 6 months: http://data.bitcoinity.org/markets/volume/6m/USD?c=e&t=a&volume_unit=btc
Visualization (for some reason it does not include the actual price top that happened in December):
And here is what happened the last time around on Bitfinex when things went kaboom in a liquidation cascade (1 min intraday chart from Feb 10):
http://bitcoincharts.com/charts/bitfinexUSD#rg180zig1-minzczsg2014-02-10zeg2014-02-10ztgSzm1g200zm2g25zxzi1gVolzl
What on earth are these overleveraged maniacs doing? Are they waiting for the bubble messiah and not willing to deleverage, no matter what happens?!
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