BitMEX Exchange Breaks Down Yesterday as BTC Declines Below $4,000

News / 13.03.2020

Yesterday, Bitcoin saw its single-day crash which took the price to its lowest mark in more than 10 months. Notably, the increased trading activities due to the crash, broke down the most lucrative crypto-derivatives exchange, BitMEX. The exchange had more than it could handle after BTC lost nearly 50% of its value and traded around $3,800.

According to data from skew markets, throughout yesterday, about $863 million got liquidated on the BitMEX exchange. Skew also noted that, long positions worth approximately $450 million had been liquidate in the early hours of March 13.

Due to the massive trading volume and liquidations on the exchange, BitMEX’s insurance fund declined massively to as low as 57.39 BTC. Before this drop, the figure was around 400 BTC. Active traders on the exchange noted that trading has since been halted, probably due to the decline. Some traders were not even able to log in to the exchange, let alone change their positions.

BitMEX however released a statement claiming that the platform outage was due to a hardware issue with a cloud service provider.

Meanwhile, some community members questioned BitMEX being down for maintenance.

They claim that something rather went wrong with the exchange’s liquidation engine, which BitMEX however responded that it is untrue.

Featured image courtesy of Shutterstock. Source: Cryptopress.

Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.