BitMEX, a popular cryptocurrency exchange, is currently investigating unusual activity that occurred involving a user selling large orders on its Bitcoin spot market. The incident saw more than 400 BTC being unloaded on the platform, causing the price of Bitcoin to crash by 87% to as low as $8900 before correcting back to its actual price. BitMEX reassured users that this event did not impact its derivative markets or index price, stating that all funds are safe and that the trading platform is operating normally.
Following the incident on BitMEX, Bitcoin faced further challenges as its price dropped to around $63,000 during Asian trading hours after crashing by more than 6%. This decline was part of a broader market downturn that wiped out over $600 million from crypto futures traders. Not only did Bitcoin suffer losses, but other major cryptocurrencies such as Ethereum, Solana, BNB, Cardano, and Avalanche also experienced declines of more than 5%.
Some analysts believe that the recent market dip is typical behavior leading up to the upcoming halving event. Crypto analyst Michaël van de Poppe noted a pattern resembling previous halvings, suggesting that Bitcoin’s price tends to peak approximately five weeks before the halving, followed by a consolidation period and potential altcoin activity. The highly anticipated BTC halving event is scheduled for April 20, with less than 5,000 blocks remaining until the event.
The recent market downturn caused significant losses for crypto traders, with a total of $623 million being lost in just 24 hours. Long traders bore the majority of the losses, accounting for $516 million, while short traders were liquidated for $107 million. Bitcoin traders experienced the most liquidations, totaling over $150 million, followed by Ethereum traders with $106 million in losses. The largest liquidation order was a $12 million long position on Bitcoin executed via the OKX crypto exchange.
The unusual activity on BitMEX and the subsequent Bitcoin price crash highlight the volatility and risks associated with cryptocurrency trading. As the market continues to experience fluctuations and challenges, traders must exercise caution and stay informed about market developments to make sound investment decisions.