Is leveraged trading driving bitcoin prices?

Is leveraged trading driving bitcoin prices? explained by professional Forex trading experts the “Is leveraged trading driving bitcoin prices?” FX trading team.

Is leveraged trading driving bitcoin prices?

Investors are now wondering what is going on with Bitcoin’s price craziness, as the price chart already looks like the infamous “hockey stick”, and experts are grasping to find the reasons why the digital currency is now hitting the $17,000 level every day.

The answer may be leverage. The Japanese exchange, bitFlyer, said that their investors are now going “crazy” over bitcoin, with leverage increased up to 15 times, as reported by Financial Times.

What is more, the complexity of the trading strategy of investors and their appetite for bitcoin and high leverage was handled by the exchange, which, in the words of the CEO, Yuzo Kano, had enough liquidity to do so and allow for the highly leveraged type of trading that occurred. The typical profile of the traders on BitFlyer are retail investors aged 20 to 50 years old on average.

Thus, Mr. Kano expressed his opinion that the high liquidity of the Japanese market will be enough for the exchange to enter the US market. BitFlyer has already won authorisation to operate in the US.

Is leveraged trading driving bitcoin prices? Conclusion

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