BitMEX recently found itself in the midst of an investigation due to strange activity involving a user selling large orders on its Bitcoin spot market. This rogue seller unloaded over 400 BTC on the exchange, causing the price of Bitcoin to plummet by 87% to as low as $8900. The platform quickly corrected the price, but the incident raised concerns among market observers.
Following the sell-off on BitMEX, Bitcoin faced additional challenges as its price dropped to around $63,000 during Asian trading hours after a crash of over 6%. This decline was part of a broader market downturn that led to more than $600 million in losses for crypto futures traders. Not only Bitcoin but other major cryptocurrencies such as Ethereum, Solana, BNB, Cardano, and Avalanche also experienced significant losses, with declines exceeding 5%.
Some analysts believe that the recent market dip is typical behavior before the upcoming halving event. Crypto analyst Michaël van de Poppe noted a pattern similar to previous halvings, suggesting that Bitcoin price tends to peak approximately five weeks before the halving, followed by a consolidation phase and potential altcoin activity. The highly anticipated BTC halving event is scheduled for April 20, with less than 5,000 blocks left until the event.
The market downturn resulted in substantial losses for 240,000 crypto traders, totaling a staggering $623 million in just 24 hours. Long traders bore the majority of the losses, accounting for $516 million, while short traders faced liquidations of $107 million. Bitcoin traders suffered the most significant liquidations, with over $150 million in losses, followed closely by Ethereum traders with $106 million in losses. The largest liquidation order recorded was a $12 million long position on Bitcoin via the OKX exchange.
The recent turmoil in the cryptocurrency market, particularly the sell-off on BitMEX and the subsequent price drops, has raised concerns among traders and analysts. With the upcoming halving event and the pattern observed by experts, the market is bracing for more volatility in the coming weeks. Traders should remain vigilant and stay informed to navigate these uncertain times in the crypto space.
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