You can check the website statistics yourself or request them from us at [email protected]
On this platform, only organic high-quality traffic
Bitcoin
$ 30,725

Bitcoin Price Drops to $8,900 on BitMEX, Exchange Launches Investigation

BitMEX is currently undertaking an inquiry into an atypical trading occurrence that led to a sudden drop in Bitcoin’s price, resulting in a flash crash on its platform.

On Monday, Bitcoin’s value against Tether’s USDT stablecoin dramatically fell to $8,900 on BitMEX, a significant deviation from its much higher trading price of over $66,000 on other exchanges.

Nevertheless, the price swiftly recovered on BitMEX, and by 4:10 p.m. Singapore time, Bitcoin was back up to $64,284, as reported by Bloomberg.

BitMEX Examines the Sudden Bitcoin Price Drop

Following the incident, a BitMEX spokesperson affirmed that the company has conducted a comprehensive investigation and identified instances of “aggressive selling behavior” involving a limited number of accounts, which surpassed anticipated market parameters.

Additionally, the spokesperson provided reassurance to users, affirming that the exchange’s systems functioned normally throughout the event and reiterated the security of all user funds.

An individual user, identified as @syq, initially reported the abrupt sell-off and suggested its correlation with the sale of 977 Bitcoin, valued at roughly $66 million. However, BitMEX’s spokesperson chose not to disclose further specifics regarding the occurrence.

Bitcoin has undergone a decline of approximately 14% from its all-time highs earlier this month, following a surge in demand triggered by the introduction of several spot ETFs in the United States on January 11.

Despite the recent downturn, the cryptocurrency has maintained a nearly 50% increase since the beginning of 2024.

On Tuesday, Bitcoin encountered further adversity, experiencing a drop of up to 6.3%, reaching a trading price of $63,140.

Currently, Bitcoin is valued at $62,674, marking a decrease of over 7% within the past day.

While the primary cryptocurrency has seen a decrease of more than 30% throughout the past week, it remains up by approximately 20% over the past month. For the latest Bitcoin price predictions, refer to the provided link.

Grayscale Sees Over $600 Million in Outflows

The recent decline in Bitcoin’s value appears to have been triggered by a substantial outflow of $643 million from the $25 billion Grayscale Bitcoin Trust (GBTC), marking its highest outflow since its transition into an ETF on January 11.

The significant outflow from GBTC resulted in a total negative net flow of $154.4 million for spot Bitcoin ETFs on that particular day.

Notably, the Grayscale Bitcoin Trust has witnessed substantial outflows, with Bloomberg data indicating an exit of $7.4 billion within its first 31 trading days. This trend stands in stark contrast to other recently launched spot Bitcoin ETFs, which have experienced net inflows.

A significant factor contributing to GBTC’s notable outflows could be its higher management fee of 1.5%, in contrast to competitors charging less than 0.3%.

Furthermore, entities like Genesis Global Holdco LLC, facing bankruptcy, have been divesting their GBTC holdings.

Despite anticipation of outflows during the fund’s potential conversion, the duration and consistency of these outflows have taken observers by surprise.

Although the outflow of Grayscale Bitcoin ETF decreased to nearly $22 million in late February, it has since rebounded and broken the declining pattern.

Related Posts

Leave a Reply

Confirm now and stay with our news

What we write about

I want to save money. Will cryptocurrency work?

Cryptocurrency is essentially virtual money that operates in a decentralized manner, not through a bank but directly on multiple independent computers.

Every cryptocurrency has two main components: the units of digital exchange called “coins” and the network within which the exchange takes place. These units can be transferred between wallets and exchanged on exchanges. The networks in which these coins exist are called blockchains, which translates to “chains of blocks.”

Latest Articles

Indonesian President Cautions Against Crypto in Money Laundering Risks
24.04.2024By
Coinbase Set to Launch $15 million Ad Campaign During NBA Playoffs: Report
24.04.2024By
Pharrell Williams And Louis Vuitton Launch NFT-Linked Jacket To VIA Holders
24.04.2024By

Latest news

Indonesian President Cautions Against Crypto in Money Laundering Risks
24.04.2024
Coinbase Set to Launch $15 million Ad Campaign During NBA Playoffs: Report
24.04.2024
Pharrell Williams And Louis Vuitton Launch NFT-Linked Jacket To VIA Holders
24.04.2024
SEC Delays Decision on Franklin Templeton’s Spot Ethereum ETF Application
24.04.2024
Hackers Expose Code Of El Salvador’s Bitcoin Wallet App Chivo
24.04.2024
Jack Dorsey’s Block Expands Bitcoin Mining Ambitions, Develops 3nm Mining Chip
24.04.2024
South Africa’s FSCA Confirms Licenses to 75 Crypto Service Providers
23.04.2024
Binance Lawsuit in Canada Following Securities Law Violation Allegations
23.04.2024
Velvet Capital, Backed by Binance Labs, Temporarily Offline Due to Phishing Attack Risk
23.04.2024
Square Enix Is Developing Its Ethereum NFT Game Symbiogenesis With Animoca Brands
23.04.2024