Crypto trading platform CEO on Bitcoin price: ‘Little guy getting squeezed out’
Bitcoin prices plunged 50 percent over the weekend
INX Limited CEO Douglas Borthwick weighed in on the crypto market and Bitcoin losing half of its value during an appearance on FOX Business’ "Varney & Co." on Monday. He argued that the "little guy" is "getting squeezed out, but the big guys continue to build large positions."
BITCOIN VALUE CUT IN HALF AS CRYPTOCURRENCIES TUMBLE IN WEEKEND SLIDE
DOUGLAS BORTHWICK: Bitcoin has been getting a lot of… fear, uncertainty and doubt over the last week. And you got to ask who's you know who's sending this information? And over the last couple of months, something's changed in the market and I think that you should learn about this or hear about it. In the past Bitcoin was traded by a lot of retail investors that used leverage. And leverage can be significant. Offshore you can do leverage, you know, 50 times, 100 times. And now, in the United States, we've got institutions that are coming out and trading optionality or gamma.
And what these guys can do is they can put huge orders onto exchanges that make these retail guys very, very afraid, get out of their positions. And obviously, you create this tumbling effect and then the institutions come back and they start buying on the lows and then they can sell in the highs because they're long optionality or volatility.
And so the big boys, as they've come into this space, they can push around the little guy, which is the retail guy using truly large forms of of of leverage offshore.
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I can tell you certainly that it was a lot of whales we're seen buying on the lows in the market in general. And so, you know, the big guys are the ones that are buying and the little guys are the ones that were selling in this panic or that happened over the weekend.
And I think that that's a very much you know, that really tells you what's… happening here is that that's the little guy that's getting squeezed out, but the big guys continue to build large positions.
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