Last week, Bitcoin plummeted from $7,500 to $3,800 at the extreme point of the low, as a result of a coronavirus panic-induced selloff combined with a liquidity crisis and potential DDoS attack on BitMEX that created a cascade of liquidations driving the price of Bitcoin down at a rapid rate.
But rather than clean up their act, strange price action continues to take place on the Bitcoin-based margin trading platform. In the latest shenanigans, the price of Bitcoin futures wicked all the way to $8,700 before falling back down to normal prices. When will the issues on BitMEX end?
Bitcoin Futures Wick Hits $8,700 on BitMEX, While Normal Prices Trade Below $7,000
BitMEX has long been the king of the cryptocurrency space, in terms of overall trading volume and impact on the overall market.
The platform’s open interest and funding rates often can have an effect on the price action taking place in the crypto market, and some of the market’s top traders reside there. Or at least they did.
Related Reading | Brutal 25% Bitcoin Crash Liquidates $0.5 Billion In BitMEX Longs
Following a cascade of liquidations last week, which BitMEX blames on orchestrated DDoS attacks, the platform nearly drove the price of Bitcoin down to zero, until the plug was pulled. Almost immediately, the price per BTC began to bounce on spot exchanges like Coinbase.
After the event, large-size traders are too fearful to trade there, resulting in empty order books compared to the days leading up to the event.
Don't mind me, just going to wick to 8.7k$BTC pic.twitter.com/JdyC0XJ2Vb
— Hsaka (@HsakaTrades) March 20, 2020
These empty order books may have caused a massive wick to $8,700 on the platform’s Bitcoin September futures contracts this morning. Meanwhile, Bitcoin price was actually trading at around $6,800 at the time, with a high of $7,100 where the wick occurred.
Wicks like these hit the stops of traders causing a cascading effect much like what happened when non-stop liquidations caused Bitcoin price to collapse last week. Price action like this has become synonymous with BitMEX.
Has a Liquidity Crisis Dethroned the King of Crypto Trading?
According to data, the lack of confidence in BitMEX corresponds with an extreme drop in the platform’s open interest (pictured above), suggesting that either traders have left the cryptocurrency market, of have found homes elsewhere outside of BitMEX.
The platform has long dominated the Bitcoin trading volume across the cryptocurrency industry, by offering long and short positions and up to 100x leverage on crypto trading. But with continued issues plaguing the platform and an investigation from the CFTC, traders may have finally had enough.
Related Reading | Cryptocurrency Exchange Order Books Are a Ghost Town, Data Shows
And with the likes of Binance and even Coinbase recently adding margin, and the rapid growth and proliferation of competitor margin trading platforms like ByBit, PrimeXBT, and FTX and more, BitMEX must clean up its act for risk losing its leadership position. Although, it may already be too late for that, given the drop in open interest.
Featured image from Shutterstock origin »
Bitcoin price set to surge as global liquidity rises.
Assessing next liquidity clusters for Bitcoin.
Bitcoin [BTC] continues to show strength, driven by rising global liquidity and favorableThe post Bitcoin: As global liquidity reaches 2022 levels, what's next for BTC? appeared first on AMBCrypto.
Bitcoin liquidity protocol Velar has announced the launch of Dharma, its Automated Market Maker (AMM), aimed at bringing DeFi liquidity to the Bitcoin ecosystem. Set to go live on Bitcoin L2 Stacks on March 19, Dharma will expand the DeFi capabilities of the Bitcoin network.
As the Federal Reserve (Fed) prepares to announce its decision on interest rates, Material Indicators, a research and analysis firm in the cryptocurrency market, is keeping a close eye on the Bitcoin (BTC) liquidity movements.
Bitcoin has been gobbled up like no tomorrow by institutions and accredited funds in the past months.
The post On-chain analyst says Bitcoin in serious “supply and liquidity” crisis appeared first on CryptoSlate.
Bitcoin’s spread in bids and offers is the widest it has been in the past three months, according to recent reports. Bitcoin’s order books are drying up as the leading cryptocurrency continues to be in the red.
Strong Evidence Supports “Bitcoin Can Serve As A Hedge In A Global Liquidity Crisis”: Grayscale Report Can Bitcoin serve as a hedge in a global liquidity crisis? According to Grayscale Investments’ latest report titled, “Hedging Global Liquidity Risk with Bitcoin,” Yes.
As from June 4th, 2019, OKCoin will no longer support Tron (TRX/USD) and Ethereum Classic (ETC/USD) margin trading. The exchange made this announcement earlier this week, saying that the move is aimed at concentrating their liquidity in their primary trading pairs.
Last week, while most crypto traders witnessed a sideways market with Bitcoin price consolidating in the mid-$8,000s, on the CAD/BTC pair on the cryptocurrency exchange Kraken, there was a flash crash, wiping out 99% of its value in seconds before rocketing back into its trading range.
CME Bitcoin futures have hit an all-time high in liquidity with 5100 contracts of open interest as per the CFTC’s data sheet. The volume on their Bitcoin contracts has been surging since the $3100 bottom with most trading activity likely to have come from institutions, June 2, 2019.
By CCN: Owners of “whale wallets” scooped up 450,000 BTC as the bitcoin market hit bear-market lows in late 2018. It appears whales now control 25% of all BTC. Is this good or bad for bitcoin? Whales are smart money These private, non-institutional buyers decided an 85 percent decline was a buying opportunity.
A series of op eds by Kyle Torpey addressing some of the oft-repeated arguments against Bitcoin. One of the earliest criticisms of Bitcoin was that the underlying token in the system had no intrinsic value.
A series of op eds by Kyle Torpey addressing some of the oft-repeated arguments against Bitcoin. One of the earliest criticisms of Bitcoin was that the underlying token in the system had no intrinsic value.
About two months ago, Lightning Labs released Lightning Loop, a service that allows users to fill or empty Lightning channels without closing them, thus reducing on-chain fees.
With the rapid rise of Bitcoin [BTC] and the larger cryptocurrency market, cryptocurrency exchanges are increasingly under the compliance radar, with respect to price manipulation. Since the beginning of April, Bitcoin has risen by over $4,000, and several reports since have questioned the liquidity of exchanges.
Bitcoin (BTC) will always be a better solution for cross-border payments than XRP, according to the head of a Hong Kong-based remittance company. George Harrap, CEO of Bitspark, says that bitcoin has a clear edge because it is already globally accepted and has sufficient liquidity for established remittance companies.
The founder of defunct cryptocurrency exchange Cryptopia, which entered liquidation following a hack in January 2019, has launched a new exchange called Assetylene.
CryptoNinjas
Crypto Facilities, a cryptocurrency derivatives exchange (recently acquired by Kraken), a couple of months ago introduced a Revenue Share Program (RSP) to incentivize clients to provide liquidity and trade actively on the exchange.
This weekend marked the speculation for what caused Bitcoin prices to drop. While it was found that a sell order of 5000 BTC on BitStamp caused BTC’s overall price to drop. It ended up having a domino effect on BitMEX, trading platform that was criticized for poor liquidity. In addition, many crypto fanatics were sharing […]
In the Bitcoin industry’s Sisyphean struggle to secure a Bitcoin exchange traded fund (ETF), the boulder is rolling back down the hill. The U. S. Securities and Exchange Commission (SEC) posted a notice today, May 20, 2019, that it is delaying its decision on the VanEck and SolidX Bitcoin ETF proposal.
CryptoNinjas
BitGo, a leading bitcoin, and blockchain asset security, custody, and liquidity company, today announced its Off-Chain Clearing and Settlement Service for clients of qualified custodian BitGo Trust Company.
Tether has taken a lot of heat for admitting it is running a fractional reserve. There’s no doubt that Tether’s unregulated nature makes this approach risky and that its lack of transparency is unsettling, but the entire modern banking system is architected on fractioned assets.
At TNW2019, Francis Pouliot, CEO and co-founder of Bitcoin exchange BullBitcoin, gave a technical overview of the cryptocurrency’s network, focusing on how it works, and what it’s capable of. During his presentation, Pouliot rounded up Bitcoin’s core value and primary directives.
Bitfinex and the New York Attorney General’s (NYAG) legal sparring in relation to $850 million in missing funds escalated with another round of court filings this past weekend.
Over the past month, Bitcoin anchored a massive bullish swing for the market. The collective market pumped to levels not seen since the November 2018 bear market shaved over $100 billion in less than a month.
Bits of Gold, a cryptocurrency trading platform based in Israel has announced that it plans on entering the European market. The platform will provide a service that enables other international apps to buy and sell Ethereum (ETH) and Bitcoin (BTC), while they rely on the Bits of Gold platform for compliance management, liquidity, and banking […]
After recent concerns regarding Bitfinex’s liquidity and price premium, CoinMarketCap (CMC) has excluded the exchange’s activity from their Bitcoin price, as reported by Finance Magnates on May 6, 2019.
While the Crypto Winter may be lingering with us into the spring, crypto exchanges are doing just fine. According to CoinMarketCap, there are now 255 major crypto exchanges.
New York-based stock exchange Nasdaq has declared that from May 1, 2019, it will add the real-time Ripple (XRP) Liquidity Index to the Nasdaq Global Index ServiceSM (GIDS. ) Nasdaq made the announcement on April 29, 2019.
Bitfinex and Tether’s legal counsel has written a response to the New York Attorney General’s (NYAG) ex parte order, which claims that Bitifinex used Tether’s reserves to cover some $850 million in losses.
Yesterday, the outlook was Bitcoin is still consolidating around the $5000-$5200 level after correcting nearly 10% last week. A common thought for the correction is that the Bitfinex news and Tether FUD were at fault.
By CCN: Nasdaq exchange is adding Brave New Coin’s XRP Liquid Index tomorrow, sending crypto traders into a bull frenzy. Within an hour of the announcement, XRP had surged by about 4%. The announcement comes within months of Nasdaq adding Brave New Coin’s (BNC’s) Bitcoin and Ethereum Liquidity Indexes – BLX and ELX.
CryptoNinjas
Harbor, a digital securities platform for compliant fundraising, investor management, and liquidity, today has announced an exclusive partnership with Gemini, a New York trust company and popular bitcoin exchange company, to use the Gemini dollar.
Bitcoin is considered to be the largest cryptocurrency in the market today, this is pretty obvious, as it has more than half of the market share in the whole crypto market. Since the token lost some of its price recently, it has caused a domino effect that basically made all altcoins lose value as well. […]
A series of op eds by Kyle Torpey addressing some of the oft-repeated arguments against BitcoinBitcoin’s core value proposition is that it is an uncontrolled, apolitical money.
Cryptocurrency trading and lending firm Genesis Capital released a “Digital Asset Lending Snapshot” for Q1 2019, indicating that it originated $425 million for the period.
According to a Bloomberg report published April 25, 2019, Singapore-based Liquidity Offset Network, the world’s first clearinghouse for crypto derivatives could launch as early as July 2019 should it get the green-light from the Singapore Monetary Authority (SMA.
According to a report from Fortune on April 23, 2019, the U. S. -based cryptocurrency exchange Coinbase will shut down its Chicago office. Coinbase will scale back plans for a high-frequency trade matching engine in development there, software that automatically matches trade bids to complete trades at a higher rate.
It’s no secret that there is a growing interest among institutional investors for Bitcoin. Just as the Intercontinental Exchange (ICE) is reportedly eyeing a BitLicense for its cryptocurrency exchange Bakkt, just a few months ago, Nasdaq launched Brave New Coin’s Bitcoin and Ethereum Liquidity Indexes (BLX and ELX).
Andrei Poliakov is the CEO and co-founder of Coinberry, one of Canada’s premier digital currency platforms. His company is the first in Canada to partner with a government municipality.
CryptoNinjas
Vaultoro, the bitcoin-based gold exchange established in 2015, which allows users to trade and hold both bitcoin and physical gold, will soon launch the 2. 0 version of its platform.
In a move to impose stricter crypto legislation amid the FTX collapse, the Canadian regulator prohibited crypto margin trading. The Canadian Securities Administrators (CSA) published an update on crypto regulation on Dec.
In the past 48 hours Bitcoin traders added to their leveraged long positions even as crypto critics and politicians ramp up their criticism of cryptocurrencies.
Traders took a heavy beating in the last 24 hours with over 180,000 seeing their positions liquidated, with bitcoin losing the most.
The post Mass Liquidations Hit Traders as Crypto Market Takes a Tumble appeared first on BeInCrypto.
Dogefather Elon Musk has recently cosigned a tweet that warns Dogecoin holders of the dangers of margin trading. This trading method usually used by experienced traders can prove incredibly risky because while there is a lot of profit to be made when a trade goes right, the loss can be devastating when a trade goes […]
