Ran NeuNer, the host of the popular CNBC Crypto Trader show, tweeted to his followers that he no longer sees a correlation between actual news about cryptocurrencies and their market prices. As NeuNer tries to make sense of why prices are sharply declining for no apparent reason, BTC miners are trying creative things to remain afloat as the bear rages.
Creative Ways To React To BTC Markets, Interesting Positions Entered By Traders
Some miners are actually shorting BTC to cope with the market. A trader named Jin Xin explained his trading strategy as follows:
“If I mine 30 coins in the next month, while the price may continue to fall by another 10 percent according to the current trend, I shall place a short order on the exchange to sell them at the current price, but deliver one month later.”
Meanwhile, BlockTower CIO, Ari Paul, had purchased a $1 million options call which had placed a bet that bitcoin price would hit $50,000 by end-of-year 2018 (or more precisely Dec 28th, 2018). LedgerX, the first US-based bitcoin options exchange, that issued the said contract to Paul stated that such a large options call had never before been entered on its trading platform.
For Paul to actually profit from his position, BTC price would have to rally over 1400% from its current market price of below $3,500 (at press time). Because the likelihood of this outcome is probably impossible, it’s a sure bet that the hedge fund manager will suffer great losses.
However, Paul wants you to believe that the call options he bought will not hurt his portfolio that much. That’s because he claims that at the time he had acquired the contract on LedgerX, he had simultaneously sold a portion of his BTC holdings. Whether or not this would have been enough to help hedge against the losses his fund is about to suffer, cannot actually be confirmed.
Neither LedgerX nor Paul have disclosed more details about their trading activities.
Lawsuit Against Bitmain, Bitcoin.com, Kraken
In other news, crypto hardware mining giant Bitmain, Bitcoin.com, BCH advocate Roger Ver, Kraken exchange and “other individuals” have all been sued by UnitedCorp, a US-based IT management services firm. The lawsuit has alleged that the defendants intentionally added “hashing power” at the time of the November 15th BCH hard fork – in order to take control and make the Bitcoin ABC chain (which they backed) the dominant chain.
Moreover, the suit has demanded fair compensation be paid for these manipulative actions – as this is clearly against “the principles of blockchain” which has been outlined in Satoshi Nakamoto’s Bitcoin whitepaper, UnitedCorp’s press release noted.