The growth of Hive’s price also has secondary effects, the interest rate on Binance suddenly jumped from 1.30 % to 5 %.
That's because the short-sellers are gearing up again.
Short-selling works like this: the short-seller borrows coins, sells them to force the price down, buys them back at a lower price, and then repays the coins with interest.
Their profit = the price they sold at minus the price they bought back minus the interest due.
Say they borrow coins at 5% APR for a month, but manage to force the price down by 15%. Their profit = 15% minus (5%/12) = 14.58%.
People who want Hive's price to rise but are lending coins to short-sellers are CONFUSED!
It used to be very interesting to put Hive on Binance at 20 % APR, some days even 40 %