One of the Top traders on Bitfinex has admitted that he has a core position in Bitcoin he trade never. He considered his Short positions only as a hedge. This has a certain reason.
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BTC Shorts to hedge
@J0E007 is a prominent Bitcoin whale, the trade on Bitfinex. Although many people seem to believe that large tends to be a market to trade the biggest part of your stack, has Joe007 confirmed now: He owns a Bitcoin-core position, which it does not trade.
Actually, the Shorts are only a hedge for its core position. Probably, this is also the case with other Bitcoin-whales of the case.
The Whole thing was initiated by @IAmNomad, questioned Joe007 about his Position. Some were of the opinion that @J0E007 would trade his entire Stack when he posted a big 10-million-USD-gains. However, this was not the case.
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Noteworthy here: @J0E007 is sometimes able to dominate the Leaderboard, while he used Shorts/Longs only as a hedge against his already solid Spot Position.
When the 14M on the leader board is just the hedge against your massive spot position pic.twitter.com/tY4uSKhiKM— Coiner-Yadox (@Yodaskk) January 31, 2020
Whales believe in BTC
How to Coin Update has already reported, the number of the “Hodler” of Bitcoin continuously. About 12.6 million BTC have not been moved for more than 12 months.
These investors have experienced, such as Bitcoin, from $3,500 to over $13,000 in increased – your Bitcoins, but still held. This shows mainly one thing: a remarkable Faith in the future prospects of the crypto-currency.
The recent comments from @J0E007 point to the psychology of the largest participants in the market. Even if whales trade frequently, so there is always this Believe in Bitcoins long term potential. This fact never changes, and Shorts might exist only as a hedge to achieve during the long wait for a new all-time high bonus wins.
If you want a lesson about the Trading results. Maybe it is advisable to keep some Bitcoin as the core in order to prevent the complete Liquidation. This lesson, the whales follow, so it is possibly also for smaller traders useful.