Daily: $8000 Bitcoin Surge - Liquidated shorts or ETF hype

What's up everyone and welcome to Box Mining Daily where we take a look at the latest cryptocurrency news and markets. Of course the biggest news of the day is that Bitcoin passed $8,000. Bitcoin has been gradually rising over the past few days. A lot of people have been calling it because of the liquidity shorts because of trade activity. But also there is a looming ETF for Bitcoin and we're going to talk about that and explore why it's advancing and crawling up in today's episode. We also have some news coming out of South Korea. Binance is trying to push into South Korea and expanding its presence there. We also have China. We're going to look at the application and use cases of blockchain in China because a recent incident over bad vaccines in China could be solved with blockchain technology. We're going to cover everything and more in today's Box Mining Daily and of course everything covered here is my personal opinion. So let's take a look at the cryptocurrency markets first of all. So we have Bitcoin passing the $8,000 mark on a few exchanges. So Bitfinex we have it at $8,013. On Binance it's a little bit shy so $7,915. But it makes a big difference to have an $8,000 instead of a $7,000 and this is why it's notable news. And this is why in the past two hours I just got like three notifications from different newsletters saying, Hey look we passed $8,000 for Bitcoin. What's next? And what's happening? So let's address what's significant about the Bitcoin push first because Bitcoin is the biggest cryptocurrency by market cap. And by Bitcoin moving up that usually causes the altcoins to decrease in value. And this is something that we saw last year especially during the time when there were a lot of Bitcoin forks happening. The altcoins dipped. But what it usually means is that because the giant is moving up and because it can attract new people coming in. Usually what happens is that the alts come up you know increase value later on. So this is a general trend that we saw in the past. Now why is Bitcoin going up? Because this has been the subject of a lot of examination on my Telegram channel. Why is it going up? Is it because of liquidity shorts or actual excitement for the upcoming ETF? So if you guys are interested in discussing that as well I would like to invite you to come on the Telegram group. I'm going to put a link down below. It's Box Data Mining. That's for discussions. And that's where we can discuss together, ask community what's happening and share intelligence and information. But besides that let's talk about this theory of the liquidated shorts. Because a lot of people are quoting this for their price increase of Bitcoin last week. The reason because the increase in price of Bitcoin was not a gradual increase like what we are seeing today. But rather a quite a big spike. So a spike increases like this. And usually that is the result of liquidated shorts because people were betting against Bitcoin. They're thinking yeah Bitcoin is going to go down. So I'm going to use 10 times leverage and bet against the price of Bitcoin. But as Bitcoin prices increase they get liquidated. They don't have enough money on their accounts to keep holding on to these contracts. And as a result caused a lot of buy orders as well depending on how the exchanges are set up. So now let's take a look at that theory as well because that was addressed in by BitMEX. Because BitMEX is one of the biggest kind of places exchanges for futures and trading. And you can see that it's not actually reported. Futures are not reported by... So first of all let's take a look at how BitMEX addressed this issue. So BitMEX came out to say well actually that theory doesn't hold that much value. Because well on BitMEX every short so bet against Bitcoin's price is matched by a long. So this is from an interview from the BitMEX CEO. And he's just basically saying well when the shorts get liquidated it just decreases the money on the user's account. And because there's a matching long position held by the exchange that means there should be no short squeeze happening. That is true for BitMEX. Well that's at least what they tell us. But on other crypto exchanges for example OKEX and Bitfinex we are a little bit unclear. And it depends on how the actual mechanics work. So it still might hold some value depending on the exchange you're on. Basically if Bitcoin prices increase and people are betting against it it could cause a rise in the value of Bitcoin. But if that is the sole reason of why Bitcoin is rising in value then Bitcoin should drop in value. Because well this was due to a trading technicality. A lot of liquidity shorts means a lot of buys in a short space of time. So as time progresses technically Bitcoin prices should go down. But this is not what we're seeing. So what the other reason could be is it could be excitement for the Bitcoin ETF. So let's talk a little bit about XGTFs. So ETFs allow different exchanges that exchange pretty much like stock market exchanges or these big clearinghouses. They allow people and users there to essentially buy Bitcoin. It's exchange traded and they hold the underlying asset. And people drew analogies with the gold ETF that was issued before. So instead of people holding gold they just hold ETFs for gold and they can start trading for exchange value. Giving accessibility to gold. And this is exactly the same with Bitcoin. So Bitcoin ETF will allow institutional investors or anyone interested in trading even pension funds that people are saying. To essentially trade and acquire Bitcoin. And that is traded by the exchange and deposited elsewhere. So this eases up and eases the entry into cryptocurrencies. Because we know with crypto the barrier to entry is to keep cryptocurrencies safe. We've heard a lot about exchange hacks in the past. And even just coding that as a custodian services. These are only beginning to become more functional this year. So if more people can have accessibility to Bitcoin and because Bitcoin prices are Bitcoin quantity is limited. The supply is limited. Then people would assume that the value would go up. So this is what people are predicting in the case of the Bitcoin ETF. If this is approved by the SEC then more people can enter. It gives greater accessibility and hence the value will go up. But let's hold our horses for a second here. Because it's not the first time an ETF for Bitcoin has been applied. In fact it's been applied in the past by the Winklevoss brothers famously. And unfortunately it was denied because Bitcoin was not mature enough at that time. But this time people are a little bit more hopeful. The reason being that while the Bitcoin market has matured a lot over the time. And being applied application from a very old exchange the CBOE has a lot more legitimacy and a different approach. And on top of that the CBOE already is trading Bitcoin futures. So you know why not allow Bitcoin is a lot of the questions that people are asking. Why not allow and approve this ETF. I mean futures have been approved anyways. This is why everyone is so hopeful about the event. So right now currently it's predicted that the SEC will wait around 45 days for an average ETF application to hear a result from that. So that's around August 15th this year before we hear a natural result. So it might be that the market is building up excitement towards this application. Also on the news we got Binance. They're pushing big to enter the South Korean market. We know that this is a very explosive market dominated by BitThumb, UpBit. But Binance wants to have a big foothold in there too. So of course if the South Koreans are interested in all the coins that Binance is offering. I think this might be a great way to expand their kind of reach to different cryptocurrencies. Next up we have a scandal that's happening in China right now over vaccines that could be solved by blockchain technology. So this is over these vaccines that were given to kids to prevent them from different diseases including rabies. So what's happening here is that these vaccines are faulty. So when they're injected to these children they're pretty much just getting water. And here it's not just that you miss out on some entertainment. But rather your kids could be left unprotected to different diseases. So in this case what they found was that over 250,000 bottles of vaccines that were injected to different kids were faulty. And this is a pretty big issue. So the issue here is overproduction. In fact there were falsified reports that this company produced the vaccine. But they didn't actually produce it. In fact they probably just filled it with other liquids. And then sent it out to the hospitals. That's absolutely despicable because you're just giving someone nothing when they're expecting a treatment. So in this case this could be solved by blockchain technology if vaccine production is monitored. If that is tracked then auditors could track this and basically notice that there is a issue with the production and the production quantity and the amount distributed to the hospital. So a project like VeChain can definitely solve this because at the production site IoT devices can register to the blockchain tech and report to the blockchain how many bottles are produced, where it's being shipped and where it's being shipped to. And auditors can say oh yeah look if there's a problem with production if not enough vaccine is being produced and yet more bottles reach the hospital. That doesn't add up. That's illogical. Now in terms of other partnerships as well we have another interesting partnership in China with the Shionan district near Beijing. And they signed a deal with ConsenSys a memorandum of understanding. So this is the first step of a partnership in basically trying to implement blockchain technology in China. So we see multiple approaches for blockchain going into China and there is a lot of need for it. So I definitely am excited for the future in this space. Guys thank you so much for watching this episode. I'd love to hear what you think about blockchain technology solving issues like this. Basically preventing vaccines, bad vaccines from being distributed and just basically stopping this immoral crime from happening. Leave a comment below. I'd love to hear what you think. Thank you guys so much for watching this episode. Remember to click the like button down there to like the video and of course the subscribe button to subscribe to this channel so you won't miss out on more updates like this. Thank you guys so much for watching. See you next time.