BitMEX and Bitcoin Price Crash - Is There a Relationship?

It has emerged that the outflow of BTC on BitMEX has significantly exceeded the inflow. Is panic the right word to describe the case?

BitMEX is experiencing hardship. Recently, the Commodity Futures Trading Commission has purportedly begun scrutinizing its activity. The regulators are concerned about its usage in the U.S., as the exchange is not officially allowed in the country.

Following the disclosure, BitMEX began losing a substantial amount of funds. According to TokenAnalyst, the London-based blockchain data provider, the outflow of BTC on BitMEX constituted as much as $83 million. The inflow, on the other hand, barely reached $12 million.

The discrepancy is big. More so, since respective numbers for Binance, for example, are drastically different: $54 million against $58 million.

The crypto community was quick to react. Some believe that this development is a sign of panic.

However, not everyone agrees. @WhalePanda, for example, states that this is not “panic leaving.” Why? Because BitMEX has a lot of BTC on its platform. Hence “it’s more of a reminder for people who don’t actively trade their entire stash to withdraw (some of) it.”

A controversial exchange

To be frank, BitMEX has always enjoyed a dubious reputation. Thus the fact that it is subject to doubt and investigation is hardly a surprise.

What’s noteworthy is that Arthur Hayes has not commented on the outflow. In his last tweet (not retweet), he addressed Roubini. He suggested Doctor Doom listens to his “epic meltdown” in Taipei. To remind, Hayes and Roubini have both attended the 2019 Asia Blockchain Summit.

Besides, last year, BitMEX was accused of manipulating the price of altcoins, specifically ETH.  Hayes fanned the flames when he described ETH as a “double-digit shitcoin.”

 

 

Previous articleFacebook Libra’s Promoters Yet to Contact Swiss Regulators
Next articleIs it too late to buy bitcoin?
A warm hello from Ukraine! My name is Lesia, I am a journalist, writer, political scientist, and crypto enthusiast. Before joining AltcoinBuzz in May I knew nothing about crypto, I was in the dark (it was very gloomy indeed). I was all skeptic and suspicious. But then one day, probably in June-July when I was doing a podcast with James and Matt, I finally grasped the concept in full. That is when I truly started to enjoy it thoroughly. I am a big believer in crypto and blockchain. There is no doubt that it is the future. But be patient, it needs time, like a fine Chardonnay. However, if you want to know when the next bull run is happening, I highly recommend asking Luc Lammers. He will definitely spill the beans! xxx

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.