Ethereum With A Record Number Of Short Positions (300,000) At The Moment

This week hasn’t been the best one for Ethereum, mainly because of the steep fall and a massive sell-off which affected most of the coins and brought down the total market capitalization of cryptocurrencies to $200 billion – something that we covered in our crypto news section earlier.

The market cap is down $25 billion and Ethereum has suffered even more. According to data from recent investor behavior, the market expects Ethereum to fall even further – mainly because of the sell-off in which ETH was the biggest loser, holding a record number of short positions that crossed 300,000.

In other words, this means that more than 300,000 people shorted Ethereum as investors continued to bet on its price to fall even lower. One of the possible reasons for this is the current existence of sizeable ICO selloffs. Furthermore, many ICOs have sold their ETH positions to make up for potential losses that may occur in the future and to fund their continued project development as well as operations.

According to Thejas Naval who is an analyst at Element Digital Asset Management:

“There’s a narrative that the crypto market was simply falling in lockstep with the equity markets, which are slowly entering into correction zones. We believe this move in cryptocurrencies had nothing to do with the stock market.”

As Naval said, there is evidence that the price of Bitcoin and global stock indices have a little link between them, since Bitcoin was also affected from the recent crypto market crash, falling to as low as $6,200.