An investigation into BitMEX has been launched in response to a sharp decline in Bitcoin’s value witnessed on the platform. On Monday, Bitcoin’s valuation against the USDT stablecoin plummeted to $8,900 on BitMEX, a stark contrast to its value above $66,000 on other trading platforms.
BitMEX’s inquiry revealed unusual “aggressive selling behavior from a few accounts,” which departed from typical market patterns. Despite this disruption, BitMEX assured users that its operations remained unimpeded, emphasizing the security of users’ assets.
“Bitcoin down to $8,900 on BitMEX?" Well, not quite the whole picture.
Yes, we are investigating potential misconduct by traders on our Bitcoin-USDT Spot market (đź‘€Did you even know we offer Spot trading?)
However, this incident had NO impact on our billion-dollar derivatives… pic.twitter.com/qWXXnyQxjw
— BitMEX (@BitMEX) March 19, 2024
It’s worth noting that BitMEX clarified its non-utilization of market makers, attributing the market upheaval to overwhelming sell orders that surpassed traders’ and market makers’ capacity to manage effectively. Despite the rapid value drop, BitMEX’s derivatives trading continued as usual, with no reports of forced sell-offs.
Strange definition of "clickbait" pic.twitter.com/gvdZFmXPuL
— syq (@syq) March 19, 2024
The investigation was spurred by a user, @syq on X, who highlighted the unexpected market movement, particularly referencing a 977 Bitcoin sale valued at approximately $66 million. While some users speculated about withdrawal suspensions, BitMEX clarified that such measures were only applicable to accounts under investigation.
In a related development, Bitcoin’s value experienced a further decline of up to 7.3% to $62,458 on Tuesday, attributed to a significant outflow from the Grayscale Bitcoin Trust (GBTC), totaling $643 million, marking its largest since transitioning to an ETF on Jan. 11.
