Bitcoin has continued to plunge since January 2018, with no respite in sight. Bitcoin shorts reached all-time highs on BitMex and other exchanges which offer derivatives. That said, a phenomenon called a ‘short-squeeze’ could score a savvy trader a tidy profit.
An oft-ignored, yet blaring feature of the cryptocurrency markets is the trading action on a particular asset largely affects prices, regardless of strong fundamentals, positive news, and noteworthy developments. In addition, the overall market is firmly anchored to Bitcoin’s price movements, meaning a plunge is likely to cause price dips across the board, and vice-versa.