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The number of investors betting that the bitcoin (BTC), the main cryptocurrency, will decrease has increased during the month of August due to the increasing volatility in the market of digital tokens and a strong sale
MarketWatch, citing Bitfinex , the fourth largest exchange of cryptocurrencies, reported that the exchange saw bets against double bitcoins from the start of the month. As of August 15th, the short outstanding interest in the exchange was over 36,000 BTC. August 1 was at 18,000 BTC, reported MarketWatch. (See also: Crypto Market Caps plunges to Bitcoin ETF Woes. )
Cryptocurrencies deals with sell-off
The increase in negative bitcoin bets comes amid a broad sell-off in cryptocurrencies in the last days. While worries are rising, entrepreneurs are earning their first coin offerings and some digital tokens including bitcoins could be overstated, almost all the biggest cryptocurrencies fell at the start of the week. August rebates come as a result of a rally in July, when investors are betting that a bitcoin exchange fund (ETF) would receive regulatory approval in the United States, but for now the regulators have not approved.
Many investors consider the bitcoins and cryptocurrency ETFs as a way to bring legitimacy to a market that is anonymous and unregulated. The investment firm VanEck and Solid X, a financial services company, formed a partnership at the start of the year to get approval for a bitcoin ETF, but these efforts were rejected by the SEC. The SEC has decided to postpone the decision until 30 September. But without the presence of a run led by the SEC, the cryptocurrencies are diminished. On Monday, of the largest 100 cryptocurrencies tracked by Coinmarketcap.com, only one traded higher. The market capitalization of the first 100 digital tokens decreased to $ 193 billion, far from their combined value of $ 835 billion in January. The lack of optimism from cryptic investors meant that digital tokens decreased in seven of the first eight days of August. (See also: How Cryptocurrency Pump-and-Dump Scams Work . )
However, not everyone thinks it will continue to decline. Chris Yoo, Black Square Capital's portfolio manager, told MarketWatch that he believes the cryptocurrency market is nearing the end of the bearish sentiment. "Above all, the ecosystem will continue to grow and grow from an increase in talent and public awareness, leading to market recovery in the near future," he said.
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