Crypto Exchange BitMEX Investigates Flash Crash in Bitcoin
Crypto exchange BitMEX is currently investigating unusual trading activity that resulted in a flash crash in Bitcoin on its platform. The incident occurred on Monday, causing the price of Bitcoin against Tether’s USDT stablecoin to drop to as low as $8,900 on BitMEX. This was significantly lower than the price of Bitcoin on other exchanges, which was trading above $66,000 at the time. However, the price quickly recovered, and as of 4:10 p.m Singapore time, Bitcoin was trading at $64,284.
A spokesperson for BitMEX stated that the company has conducted an investigation into the matter and found evidence of “aggressive selling behavior” involving only a small number of accounts. The spokesperson also assured users that their funds are safe and that the exchange’s systems operated normally during the incident.
Flash Crash Coincided with Large Bitcoin Sale
An account named @syq on X first reported the sudden selloff and suggested that it coincided with the sale of 977 Bitcoin worth approximately $66 million. However, BitMEX’s spokesperson declined to provide further details about the incident.
Bitcoin’s Recent Performance
Bitcoin has experienced a decline of around 14% from its record highs earlier this month. This drop comes after a period of high demand driven by the launch of spot ETFs in the United States on January 11. Despite the recent decline, Bitcoin is still up almost 50% since the beginning of 2024.
On Tuesday, Bitcoin traded at $63,140 after experiencing a drop of 6.3%. This decline followed a $643 million outflow from the $25 billion Grayscale Bitcoin Trust (GBTC). The outflow from GBTC was the largest since it converted into an ETF on January 11.
Hot Take: BitMEX Investigates Flash Crash in Bitcoin
Crypto exchange BitMEX is currently conducting an investigation into a flash crash that occurred on its platform, causing the price of Bitcoin to plummet. The incident involved aggressive selling behavior from a small number of accounts and resulted in the price of Bitcoin dropping to as low as $8,900 on BitMEX. However, the price quickly recovered, and Bitcoin is now trading at $64,284.
Bitcoin’s recent decline can be attributed to the launch of spot ETFs in the US, which drove up demand for the cryptocurrency. Despite the drop, Bitcoin is still performing well overall, with a 50% increase since the beginning of 2024.
The flash crash coincided with a large sale of Bitcoin worth approximately $66 million. BitMEX is currently investigating the incident but has not provided further details at this time.
It is important to note that while incidents like flash crashes can be concerning, BitMEX has assured its users that their funds are safe and that its systems operated normally during the event.
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