Bitcoin bulls are constantly exhausting the US dollar reserve pool for opening leveraged Long positions, revealed Jesse Powell of Kraken – a US-based cryptocurrency exchange.
The chief executive officer told Youtuber Ivan on Tech in an interview that the number of traders who believe that the bitcoin price would go higher is more than those who believe in the opposite. The upside sentiment, therefore, prompts a majority of traders to borrow funds from Kraken to increase their Long positions in the bitcoin market. Many a time, the absence of Short traders – those who believe that the bitcoin price would fall, misbalances the liquidity. As a result, the margin pool keeps getting exhausted.
“There is always a broad disagreement about what the price should be. There is always someone who wants to Short bitcoin […] We definitely have a way more demand to go Long Bitcoin. But, we have got only so many dollars in the system. The margin pool for borrowing dollars to buy bitcoin is constantly being exhausted, which proves that people are bullish.”
The post Bitcoin Bulls Constantly Exhaust Kraken’s Liquidity Pool: CEO appeared first on NewsBTC.
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