BitMEX CEO Gives His Thoughts on the Short Squeeze Theory for Bitcoin (BTC) Price Surge

Siamak Masnavi

On Thursday (19 July 2018), Arthur Hayes, the co-founder and CEO of BitMEX, one of the largest crypto derivatives exchanges (by trading volume), in an interview with CNBC's "Fast Money", gave his thoughts on the "short squeeze" theory for Bitcoin's huge price surge two days earlier.

The host, Melissa Lee, started by asking Hayes if he had any evidence to support the theory that short sellers on BitMEX had caused the Bitcoin price to pop on 17 July 2018. Hayes said:

"During the pump from $6,800 to about $7,250, in that... 15 minutes, we liquidated about $230 million worth of short positions, but bear in mind that we are a futures market; so, for every long, there's a short. So, there's not an imbalance of shorts per se, but many people probably entered the position around the same levels, which is probably why we got a little pump there."

He was then asked if we'd seen the worst for Bitcoin this year. Hayes had a surprising reply:

"I don't actually think we've seen the worst. I think this is a very strong reality on good volume, and we definitely could see $8,000, $9,000, and maybe just shy of $10,000. We've been here before earlier this spring: we rallied from $5,800 to in the high $9,000 level, but didn't quite crack $10000. I think similar action will happen this time, and I would like to see us test $5,000 to really see if we put a bottom in... Given that it's the summer... I think people are taking a little bit of chill time, come back into Q3, Q4, then I think the party is going to start again."

Finally, Lee asked Hayes how trading volumes were doing on BitMEX relative to the peak volumes last seen in December 2017. Hayes said that in the case of BitMEX, it's share of the market had expanded in 2018, and that the company had its best month in March, but for "spot exchanges that don't have any leverage, the peak volumes were in December." He added that we'll definitely see volumes increase if the current rally continues, but he still felt that "through the third and fourth quarter, has generally been a positive time for Bitcoin because everyone has come back from the summer vacation."

 

Featured Image Credit: Image Courtesy of BitMEX

Ukrainian Hacker Attempted to Sell Government Databases for Crypto

Michael LaVere
  • A Ukrainian was caught after attempting to sell stolen government databases in exchange for cryptocurrency.
  • The hacker used brute force to gain access to government employee's email addresses and social media accounts. 

A Ukrainian hacker was caught attempting to sell confidential information belonging to Ukrainian government databases in exchange for crypto. 

According to a press release from the Ukrainian Cyberpolice, an unidentified hacker used compromised personal accounts belonging to staff in order to gain access to more than fifty government databases. The report claims the Kyiv-based hacker used a brute force method to break into email addresses and social media accounts belonging to government employees. 

The alleged offender was caught after advertising the data on a hacker forum in exchange for an undisclosed cryptocurrency via a bot messenger. Police searched the perpetrator’s residence and seized computer and telecommunications equipment identified as being used in the hack. 

According to a screenshot text message exchange published with the report, the hacker appeared to have been selling the databases for $0.10 apiece. The perpetrator faces charges related to the “unauthorized sale and distribution of information with limited access” with a maximum prison sentence of five years if convicted. 

Featured Image Credit: Photo via Pixabay.com