Petar Zivkovski, director of operations for bitcoin trading platform Whaleclub, described bitcoin’s price recovery as a mean reversion, stating that the price declined "too quickly" following the hack.To Zivkovski, the decline was primarily caused not by traders who had given up on bitcoin's value, but on margin calls for long positions held by those who were "surprised by the hack and did not have much reaction time".Because the Bitfinex hack helped trigger fear and uncertainty, the BTC/USD pair plunged below $500, Zivkovski said.He emphasized that the pair recovered nicely from its lows below $500, a sign that speaks to market confidence.Enneking further spoke to how bullish wagers helped cause this rise, noting that "we have been strongly leveraged long since the low $500s".This robust sentiment coincided with bitcoin’s rise from their post-hack low of $480 on 2nd August to more than $580 on 4th August.
This post is from a low-reputation account and contains an unverified outbound link. Be cautious before clicking external links.