Massive Wrong-Way Bitcoin Trade Forces Socialized Clawback 8-3-18

Bitcoin Chart 8-3-18 BTC USD

Bitcoin Chart 8-3-18 BTC USD

Bitcoin Whale’s Bad Trade Leaves Counterparties Holding the Bag

A massive wrong-way bet on Bitcoin left an unidentified futures trader unable to cover their losses, burning counterparties and threatening to dent confidence in one of the world’s largest cryptocurrency venues.

The long position in Bitcoin futures listed on OKEx, a Hong Kong-based exchange, had a notional value of about $416 million, according to an OKEx statement on Friday and data compiled by Bloomberg.

While OKEx moved to liquidate the position on Tuesday, the exchange was unable to cover the trader’s shortfall as Bitcoin’s price slumped.

Because OKEx has a “socialized clawback” policy for such instances, it will force futures traders with unrealized gains this week to give up about 18 percent of their profits.

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Crypto market daily report – August 3, 2018

The cryptocurrency market continued its decline on early Friday morning as a negative sentiment seemed to prevail over all the Top 10 coins.

BTC continued its slide down to the psychologically significant $7,000 level when it dropped below $7,400, which was considered to be a key support level.

At press time on Friday, BTC was trading at just above the $7,300 and was expected to fall further during the day on declining turnover.

It appears that all the FUD regarding exchange traded funds (ETFs) which now seem to be quite a long way into the distance have affected price sentiment with BTC suffering accordingly.

Coinbase Announces That Users Can Buy Bitcoin And Other Cryptos With GBP

Coinbase is the famous crypto exchange from San Francisco, and it just announced that users are able from now on to buy Bitcoin and other cryptos with the British Pound.

Before this decision, Coinbase customers were required to keep their fiat funds in Euros.

Coinbase users from the UK will not have to convert their funds from Pounds to Euros and vice-versa.

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