The Future of Bitcoin with Willy Woo (WiM379)
The "What is Money?" Show
Incentives for Large Hedge Funds to Suppress Bitcoin Price
Shorting Bitcoin can be profitable, especially for large hedge funds. Instead of covering their shorts, they keep the market down and collect yield. They can also perform a long squeeze, liquidating those who have gone long and causing the price to drop further. By covering at a higher price, they make even more money. This creates an incentive for billion dollar hedge funds to suppress the Bitcoin price in futures markets.
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