Bitcoin Sends Shockwaves as It Drops to $8900 on BitMEX Exchange

The cryptocurrency derivatives exchange BitMEX has initiated an investigation into “unusual behavior” after receiving reports from users about a temporary decline in the price of Bitcoin. Around 1 a.m. UTC, users on BitMEX reported irregularities in the BTC-Tether (USDT) spot market, resulting in a temporary drop in the price of Bitcoin to around $8,900.

It is reported that an unidentified entity sold over 400 Bitcoins within a short period of time. BitMEX has confirmed this and has begun an internal investigation into the matter. BitMEX also stated that the derivatives market and prices of XBT futures contracts were not affected by this volatility.

According to cryptocurrency researcher Syq, an unidentified entity sold approximately over 400 BTC in batches ranging from 10 to 50 BTC within a two-hour period. The researcher also revealed that BitMEX had disabled the withdrawal feature for some accounts.

We are investigating unusual activity in the past few hours involving a user selling large orders on our BTC-USDT Spot Market.

This does not affect any of our derivative markets, nor the index price for our popular XBT derivatives contracts.

The trading platform is operating…

— BitMEX (@BitMEX) March 19, 2024

Regarding the blocked accounts, BitMEX clarified: “We have NOT disabled withdrawals for all users but only for some accounts under investigation.” BitMEX also confirmed that their trading platform is operating normally and all funds are securely guaranteed. Former CEO of BitMEX, Arthur Hayes, previously expressed the view that Bitcoin Exchange Traded Funds (ETFs) could “completely destroy” Bitcoin if they become too successful.

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According to Hayes, ETF issuers holding all Bitcoin could negatively impact the transaction volume on the Bitcoin network and diminish the incentive for mining companies to continue verifying transactions. Hayes said: “The ultimate result would be miners shutting down as they no longer have the capability to afford the energy required to run them. Without miners, the network will collapse and Bitcoin will disappear.”