The Bitcoin Price – Deus Ex Machina
If our cumulative experience in the financial markets taught us one thing, it’s this – “leverage is God”.
Leverage creates and leverage destroys.
Leverage explains the explosion and collapse of bitcoin prices seen over previous weeks.
Events in bitcoin always move quickly and never more so than these last months. As has been widely covered in the news, Bitfinex, the leading bitcoin exchange outside China in terms of liquidity suffered a major hack. Some 120,000 bitcoin were stolen, equating $72m USD in value at the time.