Bitcoin’s Freefall Sees BitMEX Take a Massive Tumble
Bitcoin’s continued decline is sending ripples through the crypto market. Yesterday, the coin registered its largest single-day crash in over ten months. The trading frenzy that ensued resulted in the crushing of BitMEX, the most profitable crypto-derivatives exchange. BTC shed nearly 50% of its value to close at about $3,800, a decline that proved too much for the exchange’s handling.
Skew markets reports that BitMEX experienced liquidations of up to $863 million. Additionally, the platform saw the liquidation of its long positions worth an estimated $450 million in early March 13.
As a result of the high trading volumes and liquidations, BitMEX’s insurance fund took a massive tumble settling at as low as 57.39 BTC. Before this drop, the figure stood at around 400 BTC. The traders expressed concerns over the stoppage of transactions on the platform attributed to the price falls. Some lamented their inability to log in to the platform, let alone trade.
BitMEX was, however, swift to respond to these allegations. In a press statement, it attributed the platform’s outage to a hardware issue with its cloud service provider.
Nevertheless, its explanation didn’t go down well with some members. They questioned the sincerity in BitMEX’s suggestions that maintenance issues occasioned the outage.
They hold that something went wrong in the exchange’s liquidation engine. BitMEX discounts this suggestion all the same.