Bitcoin prices have been falling rapidly from a high of $10, 200 to below $8, 311 at some point, which has been attributed to margin calls and liquidations on BitMEX.
BitMEX, a Seychelles-based exchange, provides customers with 100x leverage. These are loans that multiply trader investments by a factor of 100x.
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Sign Up to Attend: http://bit.ly/CentonomyEvent2019According to recent data, the situation has seen investors sell into a falling market to cut losses rather than hold long positions. The pressure to sell has led to a further market price decline.
This is the lowest Bitcoin has been since early June 2019. The ferocious sell-off on BitMEX has resulted in a nearly 13% price drop which saw more than 600M long contracts liquidated on the exchange.
As a result, the crypto index is now at one of its lowest, positioned at level 15, which signifies extreme fear.
During a 2-hour sell-0ff period, BitMEX saw volumes worth $2.5B, one of the biggest trading days in months on the exchange. The two-hour window saw almost 6 percent of all long liquidations to date this year occur during this time.
The current price drop has been a concern for years where leveraged derivates exchanges like BitMEX can collapse Bitcoin’s price. This has in turn inspired non-leveraged initiatives like Bakkt’s futures product.
UPCOMING EVENT:
Sign Up for the upcoming Centonomy Cryptocurrency event featuring the Blockchain Association of Kenya, Lawyers Hub Kenya, and Luno Africa Crypto Exchange, on September 27th, 2019 in Nairobi, Kenya.
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