In the past few days, although Bitcoin has stagnated in the $13,000 price range, Filecoin has experienced a sharp rise.
According to data, in the past 24 hours alone, the exchange rate of FIL to the US dollar has risen by 48.13%. Currently, the price of this newly launched cryptocurrency exceeds $40, the highest point in the past 5 days.
Analysts attribute this rapid Filecoin price movement to "short-squeeze" (also known as short-squeeze), and short position holders are forced to close their positions, resulting in a surge in buying. When the financing interest rate in the futures market is extremely negative, forcing investors to withdraw from their positions, there will often be short-selling situations.
In two days, Filecoin soared 91% from a low point V丨hugoschan
Earlier last week, the transaction price of Filecoin fell to 20.9 US dollars. Today, the market transaction price of Filecoin has exceeded 40 US dollars, and the price has soared by more than 91% in 2 days. As mentioned earlier, many analysts believe that, This price action is a by-product of "short-squeeze".
Prior to this, the financing interest rate of the main FIL futures market became negative, which means that the shorts have a great incentive to close their positions, thereby pushing up the price when the shorts are exploded.
Even at the moment, several hours after the "short-sell" is completed, the financing interest rate in the FIL futures market is still negative. On FTX, traders who short FIL are charged an hourly fee of 0.2526%, so the cost of maintaining these positions Is very high. Even so, there are still many traders shorting FIL tokens under pressure. V丨hugoschan
FIP-004 successfully landed & Filecoin officially issued a warning
Prior to this, there were reports that some Filecoin miners chose to strike due to the unreasonable economic mechanism of FIL tokens. In order to solve the concerns of the miners, Filecoin officially launched an improvement proposal called FIP-004. This allows miners to get 25% of the block reward immediately. According to Filecoin's official Slack community, Filecoin has successfully completed the upgrade at a block height of 170,000.
In addition to providing 25% block rewards immediately, Protocol Labs also promised to provide loans to miners to further ease the problems encountered by miners.
However, the introduction of FIP-004 has also attracted the attention of FIL token holders, because if miners choose to sell these unlocked FIL tokens on the market instead of staking, then the problem still cannot be solved, and may Will cause long-term pressure on the market.
At present, whether the introduction of the FIP-004 proposal will play a positive role remains to be further verified by the market.
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