BitMEX probes dubious trading activity resulting in Bitcoin plummeting to $8.9k
BitMEX, a popular cryptocurrency exchange, is currently investigating suspicious Bitcoin trading patterns on its platform that may involve unfair practices. This internal investigation comes after a sudden and significant drop in Bitcoin’s value on BitMEX compared to other trading platforms.
On Monday, Bitcoin’s valuation against the USDT stablecoin plummeted to $8,900 on BitMEX, while maintaining a value above $66,000 on other platforms. However, Bitcoin’s price on BitMEX quickly returned to normal and has since mirrored the overall market trends.
Upon conducting their investigation, BitMEX discovered unusual “aggressive selling behavior” from a few specific accounts, which deviated from normal market expectations. The exchange reassured its users that its operations were not disrupted and that their assets remained secure.
BitMEX clarified that it does not utilize market makers and explained that the large and rapid sell orders were too overwhelming for both the market makers and traders on the platform to effectively manage. It is important to note that Bitcoin’s rapid drop did not impact BitMEX’s derivatives trading and did not result in any forced sell-offs. The exchange also emphasized that it continues to process deposits and withdrawals as usual, with transactions typically being completed within minutes.
The unexpected market movement was initially highlighted by a user with the handle @syq on X, who noted that it coincided with a 977 Bitcoin sale worth approximately $66 million. Some BitMEX users claimed that the exchange had suspended withdrawals, but BitMEX clarified that this was only applicable to accounts under investigation.
In a related development, Bitcoin’s value experienced a decline of up to 7.3% on Tuesday, dropping to $62,458. This drop was attributed to a significant outflow from the Grayscale Bitcoin Trust (GBTC), amounting to its largest outflow since transitioning to an ETF on January 11, totaling $643 million.
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