BitMEX recently found itself investigating an uncommon incident involving a user selling large orders on its Bitcoin spot market. This activity drew attention as a rogue seller offloaded more than 400 BTC on the exchange, causing the price of Bitcoin to plummet by 87% to as low as $8900 on the platform before recovering to its actual value. BitMEX reassured users that this event did not affect its derivative markets or index price, ensuring that all funds were safe and that the trading platform was functioning normally.
Despite BitMEX’s clarification, Bitcoin’s price encountered further difficulties as it dropped to around $63,000 during Asian trading hours, experiencing a decline of over 6%. This downturn was part of a broader market slump that wiped out more than $600 million from cryptocurrency futures traders. Additionally, other major cryptocurrencies like Ethereum, Solana, BNB, Cardano, and Avalanche also suffered losses of more than 5%. Some analysts view this dip as a common market pattern preceding the upcoming halving event.
As the eagerly awaited BTC halving event approaches on April 20, with fewer than 5,000 blocks remaining until the big day, market analysts anticipate fluctuations in Bitcoin’s price and potential altcoin activity. Crypto analyst Michaël van de Poppe noted a trend resembling previous halving events, where Bitcoin’s price tends to peak around five weeks before the halving, followed by a consolidation phase. This observation suggests that market participants may experience increased volatility leading up to the event.
The recent market downturn resulted in significant losses for approximately 240,000 crypto traders, totaling a staggering $623 million within a 24-hour period. Long traders bore the brunt of the losses, accounting for $516 million, while short traders faced liquidations totaling $107 million. Among different assets, Bitcoin traders experienced the highest liquidations, surpassing $150 million, followed by Ethereum traders with $106 million in losses. Notably, the largest liquidation order recorded was a $12 million long position on Bitcoin executed through the OKX crypto exchange.
The recent unusual activity on BitMEX, coupled with market challenges faced by Bitcoin and other cryptocurrencies, highlights the inherent volatility and risks associated with the crypto market. As the industry prepares for the upcoming halving event, market participants should remain vigilant and adapt to potential price fluctuations and market uncertainties.
Leave a Reply