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One of the top traders on Bitfinex has admitted that he has a coreposition that he never trades. His short positions are implied to be just a hedge.
@J0E007 is a prominent Bitcoin whale who trades on Bitfinex. Although many seem to think that large players in the market tend to trade most of their stack, Joe007 has confirmed that he has a core Bitcoin position he doesn’t trade. In fact, shorts are merely a hedge to ensure his core position. It may be fair to say that this is the case with other Bitcoin whales as well.
The question came from @IAmNomad, who asked Joe007 about his position. Posting large $10M USD wins, some were under the impression @J0E007 was trading his entire stack. This is not the case, however.
I do have a core BTC position that I don't trade, so the leaderboard numbers definitely don't paint the whole picture of changes in my total portfolio value.
— Joe007 [I identify as overweight dolphin] (@J0E007) January 31, 2020
What’s remarkable is that @J0E007 is able to dominate the leaderboard (sometimes) while using shorts/longs as merely a hedge against his already-massive spot position.
When the – 14M on leader board is just the hedge against your massive spot position pic.twitter.com/tY4uSKhiKM
— Coiner-Yadox (@Yodaskk) January 31, 2020
As BeInCrypto reported previously, the number of Bitcoin ‘hodlers’ has steadily increased. Around 12.6 million BTC has not moved in more than 12 months. These holders have seen Bitcoin rise from $3.5k to over $13k but continued to keep their bitcoins unmoved. This demonstrates a remarkable belief in the first and foremost cryptocurrency’s future prospects.
@J0E007’s recent comments point to the psychology of the biggest players in the market. Although whales may be trading frequently, there is always this belief in the long-term potential of Bitcoin. That fact never changes, and shorts may merely exist as a hedge to bring in bonus profits during the long wait towards a new all-time high.
There’s a lesson in here for all traders about trading your whole stack. Perhaps it is wise to keep some bitcoins on the side as your core to prevent being liquidated completely. It’s a lesson that the big whales follow, so maybe smaller traders should, too.
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