Bitcoin’s price is at risk of going down because investors are funding short positions in Bitcoin by borrowing digital money from exchanges. Datamish shows investors funding short which causes Bitcoin’s value to drop.
Bitcoin dropped again Friday, despite an increase in capital inflows from large institutional investors and wallet owners. Brevan Howard Asset Management LLP & Tudor Investment Corp increased their Bitcoin holdings and added more to their portfolios.
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Investor risk appetites are being negatively affected by increasing geopolitical tension and the more tense Russian-Ukraine crisis. This has fueled a bearish narrative surrounding Bitcoin’s price, which plunged below $40,000 with no signs of letting up.
There are risks involved in cryptocurrencies, which is something that large investors understand. Datamish’s March 11th, 2022 survey showed 1,500 Bitcoin had been lent as short-term loans to cover those risks. That is close enough to the 3,603 BTC loan. Increased funding of short positions has often had negative results such as price drops.
The recent price movements of Bitcoin have been closely monitored by analysts who predict that the bitcoin price will continue to drop. They still believe that there is a risk of Bitcoin’s future decline, even though it has recovered.
Bitcoin’s price rebound can be attributed to Ichimoku’s first bearish breakout since December 4, 2021. Analysts think that Bitcoin prices have reached a low point in the $38,000-$38500 region. This area is a crucial confirmation zone to trade bitcoin. For investors who had sold their assets in anticipation for the upcoming crash, this could mean more losses.
According to Reuters Russians Inundated The UAE with Liquidation Demands
Russia’s drowning effort to save their fortunes, financial resources and company executives told Reuters that many Russians flooded the UAE’s cryptocurrency firms with liquidation requests.
That’s not all they want to do. These investors may be looking to buy real estate in Dubai. While others plan to convert it into fiat and hide their money somewhere else – insiders reported.
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The Swiss financial sector is in turmoil. Brokers requested that Bitcoin worth billions of dollars be withdrawn. Clients were worried that Switzerland would freeze their funds. Representatives claim they’ve received multiple requests up to $2B.
For Russians and Belarusians, the UAE is a neutral territory. They have used it to bring their cash to Dubai to protect themselves from any possible wars. There’s even been talk of people bringing cryptocurrencies here because they know it will always stay safe no matter what side wins.
Many Russians are said to be buying real estate in UAE using crypto currency, according to UAE sources. They’re using digital forms of money both ways – bringing their resources into Dubai while getting them out from other regions.
Featured Image from Pixabay. Chart by Tradingview.com