BitMEX Dropped by 25% After Mass Liquidations
April 2, 2020 2:45 pm
The amount of Bitcoin (BTC) maintained by crypto exchange BitMEX has dropped by 25% in the former few weeks.
On March 12, During the crypto bloodbath, Bitcoin (BTC) plunged 50% from a price of over $10,400. Mass liquidations on BitMEX were supposed to work in the crypto crash. Since then the amount of Bitcoin held on the platform has lowered significantly.
Per data collected by CoinMetrics, BitMEX held roughly 315,000 BTC, on March 13, which has fallen to 244,000 BTC as of March 29.
The reasons for the fall are unclear. Investors may simply be withdrawing their crypto to cold storage in the face of an unpredictable market or BitMEX may have selected to lessen its exposure to Bitcoin.
Though the outflows could also signify a lack of confidence in BitMEX itself — following the crypto bloodbath liquidity on the exchange’s BTC futures desiccated.
Others suggest that it may be a result of large players and institutional investors resolving to get out of the current crisis.
Liquidation Of Bitcoin
BitMEX is not the only exchange to detect a fall in its Bitcoin holdings. since March 18, data collected by Glassnode shows Withdrawals have been rising, bringing the amount of BTC on exchanges to their lowest levels in about 8 months.
Glassnodes stated that traders may have simply chosen to maintain custody of their assets, or have decided to terminate trading and hold for the long term, or that they may be bothered about the liquidity of crypto exchanges between the market crisis.
Bitcoin Exchange Rate into Stablecoins
Though Bitcoin is being comparatively well under the circumstances, the flows of Bitcoin from exchanges could be due to expectations of further price drops. Calculating weight to that analysis is the transfer of capital into stablecoins such as Tether (USDT), which recently hit a new all-time high balance on exchanges.