Following the recent major bitcoin and cryptocurrency market crash, popular influencer WhalePanda tweeted that he could “no longer recommend” trading on BitMEX, following criticism of the platform’s handling of the situation.
While prices plummeted, BitMEX, ‘very conveniently’ according to WhalePanda, went offline twice during peak trading, citing firstly a ‘hardware issue’ followed by a DDOS attack.
The Smoking Gun
Some traders and analysts suggested that there was no hardware issue, an idea which was swiftly rebutted by BitMEX.
However, with the BitMEX insurance fund actually getting bigger during the crash, many questioned why it wasn’t used to prevent the rolling liquidations and stem the losses.
Perhaps because there was a more profitable solution, according to some theories. Disclaimer: this is one opinion being shared on crypto-Twitter, and is being reported for interest reasons only. A tweet-thread by trader Lowstrife gives more details.
Circuit Breaker?
Lowstrife believes that BitMEX became completely disconnected from the rest of the market, after suffering a ‘slow’ cascading margin call. As leveraged traders were getting rekt, the liquidation engine continued the dump.
With an order book hopelessly overwhelmed by the volume in the liquidation engine, Lowstrife suggests that BitMEX killed the market as a circuit breaker for the negative feedback loop. If this is the case, he believes it was the right decision.
While BitMEX suffered from its ‘hardware issue’ the market bounced back almost 40% in under half an hour.
Profit Time
If you thought that was the contentious bit, you were wrong. Lowstrife suggests that in the aftermath, BitMEX took over manual control of its liquidation engine. Having been previously flooding the market, it became reluctant to sell until the market had risen 1000 points.
At which point it started to profit.
Note that there is no suggestion that BitMEX deliberately crashed the market, simply that its liquidation engine exacerbated the crash, and then manual control was taken to profit from it.
Not The First Time for BitMEX
The risk of highly leveraged trades on platforms like BitMEX is that a crash can create a wave of liquidations causing a sell-off, further crash and into a feedback loop.
Bitcoin has previously spiked $300 in under a minute, attributed by many to the fact that BitMEX had gone offline for maintenance.
BitMEX has also faced regular accusations of market manipulation, due to which it becomes the major entity that benefits when Bitcoin does crash.
And why did the insurance fund not kick in to save the market? The relatively few drawdowns from such a large fund are also a source of criticism, although a recent investigation suggested it was functioning as intended.
In contrast, Deribit also went down during the crash and saw its insurance fund decimated. However, rather than inflict socialized losses on its users, the exchange topped up the insurance fund with 500 BTC from its own coffers.
It’s unlikely we will see a move of such integrity from BitMEX any time soon.
Do you think BitMEX is behind the latest Bitcoin crash? Share your thoughts in the comments below.
origin »
The global markets were subjected to an unparalleled meltdown yesterday that proved to be particularly impactful to the crypto markets, with Bitcoin and many major altcoins posting their largest single-day losses ever.
The interest and demand in the derivatives market had increased significantly in 2019 with major mainstream organizations entering the frame. The spike in institutional interest was evident but the yeThe post 62.
The institutional traders on CME Group’s Bitcoin futures trading desk and the retail traders and crypto whales trading on BitMEX often dominate the market and dictate where the market goes next. With Bitcoin futures contract expiry coming up this Friday, and with BitMEX open interest soaring to new highs every hour, an incredibly massive and... The post appeared first on NewsBTC.
The bitcoin price just strongly rejected the $8,600 level, breaking down from a tight range for the first time in four days. BTC dropped below $8,400 on major exchanges like BitMEX, leaving the dominant cryptocurrency vulnerable to a deeper pullback.
The bitcoin price rose to as high as $8,916 across major cryptocurrency exchanges like BitMEX and Binance on January 15. Since then, BTC fell by three percent in a typical short-term top formation. Lower time frames indicate a double top structure, which normally suggests that the asset tried to break above a key resistance level... The post appeared first on NewsBTC.
Aluna Social, an all-in-one crypto trading terminal and social network with multi-exchange support, today announced that a major update has been completed and is now live on the Aluna. Social platform.
The Bitcoin price has fallen by nearly 30 percent since rising to as high as $10,600 in October. Technical analysts have started to consider a further pullback to the high $6,000 region. On Oct.
Crypto derivatives exchange BitMEX hasn’t seen a major increase in withdrawals following the email leak it experienced last week. With 30,000 emails potentially compromised, the exchange prevented users from emptying their BitMEX balances by temporarily disabling Bitcoin withdrawals during the weekend.
BitMEX has experienced a data leak, but not in the way you might expect. In a major misstep, the company accidentally shared user email addresses with its customers. On November 1st, the exchange issued a statement: “Earlier today, some of our users received an email which contained the email addresses of other users in the […]
The post BitMEX Exposes User Emails In Data Leak; Twitter Hack Follows appeared first on Crypto Briefing.
BitMEX, one of the largest crypto derivatives exchanges in the world made an announcement on Nov 1st regarding the implementation of major changes to their price indices in order to remove insufficient trade volume.
The Ethereum price (ETH) has dropped by nearly six percent within a 12-hour span following Bitcoin’s overnight three percent slip from $8,200 to $7,960. Across major cryptocurrency exchanges like BitMEX, Binance, and Coinbase, the price of Ethereum slipped from $173 to $163, recording a large drop following the daily close.
Bitcoin derivatives giant BitMEX has announced it has made a significant addition to its legal team in the form of veteran finance lawyer Derek Gobel. Derek Gobel Joins BitMEX In a blog post on September 11, the exchange confirmed it had hired Gobel as its new general counsel.
The massive Bitcoin sell-off that sent prices below the $10,000 at the end of August wasn’t the result of manipulations, according to an ex post facto research by Coin Metrics. First Major Bitcoin Sells Spotted on Coinbase Large traders or institutional investors often manipulate the Bitcoin price, especially through fake volume or trading derivatives.
Following an abrupt drop from $10,277 to $9,700 in the bitcoin price on August 28, the dominant crypto asset has continued to demonstrate weakness in its short term trend. In the past 12 hours, the bitcoin price has declined from $9,750 to $9,320 across major crypto exchanges including Bitstamp and BitMEX.
On August 28, the bitcoin price abruptly crashed from $10,200 to $9,500 on major cryptocurrency exchanges including BitMEX, recording a staggering 7 percent drop within a span of minutes. The drop occurred hours before the weekly close of the BitMEX perpetual contract, which reflects the price of bitcoin on major spot exchanges.
The world of traditional financial assets may be celebrating a weekend and getting a break now. However, the cryptocurrency space does not sleep, with the world’s largest cryptocurrency, Bitcoin, recording yet another major dump in its valuation, at press time.
The Commodities and Futures Trading Commission (CFTC) has started an investigation into BitMEX, the largest margin trading platform in the crypto market, according to a Bloomberg report. BitMEX, along with other major margin trading platforms, have not allowed U.
The Commodities and Futures Trading Commission (CFTC) has started an investigation into BitMEX, the largest margin trading platform in the crypto market, according to a Bloomberg report. BitMEX, along with other major margin trading platforms, have not allowed U.
On June 18, within minutes, the bitcoin price climbed from $9,300 to over $10,500 across major crypto exchanges, triggering the entire market to recover swiftly. Analysts have generally attributed the abrupt surge in the bitcoin price to the occurrence of a short squeeze on margin trading platforms like BitMEX.
After a quiet week of consolidation, the cryptocurrency market witnessed a major surge at press time. Bitcoin, which had only exhibited a growth of 2. 83 percent over the last week, pumped by 3. 38 percent in an hour.
Криптоаналитик и репортер BLOCKTV Джо Саз выразил мнение, что рост биткоина продолжится после ликвидации коротких позиций на $100 млн на популярной бирже BitMEX. Bitcoin leads the charge in major weekend bull run, breaking $9000 in massive weekend rally.
Cryptocurrency trading platform BitMEX has hinted it will begin using Blockstream’s Liquid sidechain technology to reduce its impact on the Bitcoin mempool. Bitrefill: BitMEX Should Reduce Fee Impact As part of a social media discussion started by Bitrefill CEO Sergey Kotliar over how major exchanges create higher fees for Bitcoin users, staff said developers were “testing” solutions.
By CCN: On May 27, the bitcoin price surged from $8,000 to $8,939 on major exchanges such as Bitstamp and Coinbase, achieving a new high for 2019. Key catalysts behind the abrupt increase in the bitcoin price within a short time frame remain unclear; some have suggested the overall improvement in sentiment around the crypto market and an increase in demand from retail investors.
The recent crash of Bitcoin sent waves across crypto Twitter and there was widespread panic as enthusiasts half expected a major market crash. While some panicked, others remained calm and assessed the situation.
On May 17, the price of Bitcoin plunged from around $7800 to $6700 within minutes in a flash crash on BitMEX. Immediately after, the price of Ethereum dropped from $240 to $190. The abrupt decline in the price of Bitcoin was triggered by the placement of a large sell order on Bitstamp and other major crypto […]
The post How Bitcoin and Ethereum plunged in minutes amidst unexpected correction appeared first on CryptoSlate.
At the current price of $7,800 (according to BitMEX) BTC is up 44% so far this month, which would be the coin’s best performing month since it increased by 64% in November 2017. As we analyzed yesterday, altcoins have historically outperformed BTC following a surge in its price; they essentially lag behind its gains.
A new report by BitMEX Research reveals that the most profitable fee bucket for running a Bitcoin Lightning node has earned them an annualized investment return of almost 1 percent on their outbound channel balance.
Earlier this week, a programmer on Reddit reportedly discovered margin trading features on Binance’s API, the world’s largest crypto exchange by daily volume. Noting that major cryptocurrency exchanges like BitMEX and Bitfinex have been able to manage high volume markets by featuring margin trading, the developer wrote: “This change has not been reflected on the […]
The post Binance Clarifies Rumors About API Featuring Crypto Margin Trading appeared first on CryptoSlate.
According to pseudonymous cryptocurrency researcher “I am Nomad” and a report from The Block, QuadrigaCX co-founder Michael Patryn traded large Bitcoin positions on BitMEX surpassing the tune of $8 million.
The cryptocurrency market has been slow this past month. There have been days where the price of Bitcoin has moved less than 1%, unusual for the typically volatile asset. With such little movement, major trading opportunities are few and far between and margin trading has become a popular means to turn a profit.
The economy is doing just fine, they say. No, maybe not. A growing number of economists (and notable ones at that) have begun to tout theses accentuating that the world’s economy isn’t in clear waters, in spite of the seemingly ever-rallying stock market.
Since BitMEX rocketed to the tip of the crypto market, hosting hundreds of millions of dollars worth of nominal Bitcoin (BTC) trades each and every day, the company has come under pressure from regulators.
U. K. -based exchange CoinFLEX plans on offering physically delivered bitcoin futures that can be leveraged up to 20 times, a move that will make them a major competitor to giants such as the New York Stock Exchange and Eris Exchange.
Fine French Wine Retailer Teams Up With BitMEX To Gain Major Stake In BitOcean BitOcean is presently inactive, but that has not stopped BitMEX and Madison Holdings Group from finding value in it. Based on a report on December 21st, it looks like the two entities are working together to hold a majority stake in […]
Monday was a great day on the floor of the cryptocurrency exchange market for both traders and investors in major cryptocurrencies, with many cryptos rebounding in value, contrary to the industry-wide erstwhile bearish market.
The market crash for the prices of nearly all cryptocurrencies has been taking a major toll on everyone. From investors to developers to miners, the community is suffering, and the changing prices have had a ripple effect.
The Bitcoin Cash (BCH) hashwar begun on November 15. Over the last 24 hours, the two sides have battled for control of the world’s fourth largest cryptocurrency. A BitMEX analysis from earlier today reveals just how costly the battle has become: both BCH camps are mining at a major loss. One reason why bitcoin is […]
Bitcoin hits a historic 12 month low of $5400. The pre-eminent cryptocurrency has cratered 11 percent just within the last four hours. The enormous drop in price appears to be driven by major Bitcoin and derivatives exchange BitMEX, representing 34 percent of 24-hour market volume.
Angelina Kwan, former managing director and head of regulatory compliance for Hong Kong Exchange and Clearing, is taking on the position of COO of BitMEX, one of the largest cryptocurrency exchanges in the world, at a time when the challenges facing these exchanges are greater than ever.
Major cryptocurrency exchanges like Kraken, BitMEX, and Binance are all facing shutdowns, according to a new report posted online earlier today. “Coming exchange shutdowns” could affect Kraken, BitMEX, and Binance “as CFTC and SEC design regulatory actions”, writes Rogue Trader at The ICO Journal in a post from earlier today. The ICO Journal cites a […]
According to BitMEX Research, a group of analysts at major Bitcoin exchange BitMEX, Bitmain has been intentionally lowering the profit margin of its core business prior to its initial public offering (IPO).
This morning, Bitcoin is finally on a path back up to $7,000. 00. No, this is not the start of a major bull run but it is a sign that some tinkering may have been going on during the recent BitMEX upgrade, which saw a number of users use access to the platform during planned downtime.
Hong Kong-based trading platform Bitcoin Mercantile Exchange (BitMEX) has revealed it traded over 1 million Bitcoin in the 24 hours through July 24. ‘Astronomical Surge’ In Volume As Bitcoin prices continue to hover above $8000, major exchanges have handled daily volumes exceeding $5 billion this week.
Arthur Hayes, the CEO at BitMEX, a major Bitcoin exchange that gained popularity amongst professional traders with its sophisticated leverage trading engine, said that Bitcoin achieving $50,000 by the end of 2018 is still a possibility.
Binance has just added Compound (COMP) trading with 50x leverage on its futures exchange. However, the crypto community argues that the new altcoin is untested to allow for such a level of risk. Compound (COMP) emerged on the scene only a few weeks ago.
From a price perspective, Ethereum’s golden age has long passed. In 2017, the second-largest cryptocurrency saw a parabolic bull run that eclipsed that of most other top cryptocurrencies, Bitcoin included.
Bitcoinist caught up with Max Keidun and Roman Snitko, CEO and CTO of HodlHodl, whose peer-to-peer bitcoin trading platform and exchange just secured a private funding round from some notable members of the Bitcoin community.
Bitcoinist caught up with Max Keidun and Roman Snitko, CEO and CTO of HodlHodl, whose peer-to-peer bitcoin trading platform and exchange just secured a private funding round from some notable members of the Bitcoin community.
