Bitcoin at $ 12,000 is not a new record, analyst says"

blog

Bitcoin hit $ 12,000 on the back of news that South Korean police arrested Coinbit, the country's third-largest cryptocurrency exchange.The price of bitcoin soared to $ 12,000 on December 19, as a result of which the South Korean exchange, Coinbit, was blocked for four days. The arrest came after a week of unusually harsh rhetoric between the US and South Korea. President Donald trump said that the country's new trade war threats will be addressed "very quickly."The US is conducting a "very clean" trade war with Korea , trump said, adding that any country that joins US trade wars will be forced to join the US, and not leave the US market.The US has signed a huge number of trade agreements with Asian countries, such as Australia and Singapore, which may hurt the local crypto scene, said Josh Zeshev, managing partner of BitMEX. Josh Zeshev says that the us trade deficit with Asia will be cleared "very quickly."During the last tranche of acclimatization, the price of bitcoin fell by almost 3% to $ 8,900 on Binance and recover to $ 12,000. At the time of writing, bitcoin is trading at $ 12,011 with a trading volume of $ 49.8 billion.As part of acclimatization, participants in the derivatives markets also had to stop buying and selling crypto derivatives. This is necessary in order to get rid of "smart money" and stabilizing the market. For example, according to WhaleMap, on December 2, whale accounts bought back $ 250 million worth of bitcoin and $ 400 million worth of altcoins in a few hours.When the price of bitcoin dropped to about $ 12,000, these large short positions became extremely liquid, causing "weakness" to be felt throughout the derivatives market. For example, Opinions became extremely bearish as bitcoin hit $ 11,600, before the price dropped below $ 10,000. Some crypto derivatives products even stopped working. For example, the so-called "Deribit" product stopped working due to the massive price drop.However, the situation has changed, as bitcoin has grown again. Ki Yong-Joo, CEO of CryptoQuant, said that the data shows that "consumers stopped abruptly." Ju said that while demand for such liquidation may have increased, the liquidation of short positions "may have increased". He added: "On December 19, when the market started to decline, many positions were liquidated for less than a week's profit. It may be that mature buyers stepped in and started taking short positions, which led to a short-term squeeze."The CEO of a major exchange suggested that this squeeze was caused by crypto whales placing leverage on exchanges. Hedge funds use exchanges