A Huge $16M Inflow In BitMEX: Possible Cause Of Bitcoin’s Price Crash?
One of the most popular Bitcoin margin trading exchanges, BitMEX, has seen a daily positive inflow of around $16 million. This took place right before Bitcoin’s price went through a notable crash of more than $450 in less than an hour.
BitMEX Sees $16M Positive Inflow
According to a well-known cryptocurrency monitoring resource TokenAnalyst, one of the most popular Bitcoin margin trading exchanges, BitMEX, has seen a positive inflow upwards of $16 million right before Bitcoin’s price went south and crashed.
? 24H BTC on-chain flows:#binance $69M in | $61M out#bitmex $26M in | $10M out#bitfinex $6M in | $5M out#bitstamp $26M in | $36M out#bittrex $4M in | $4M out#poloniex $3M in | $3M out#kraken $26M in | $24M out#huobi $54M in | $74M out
More @ https://t.co/u90eafzR5J
— TokenAnalyst (@thetokenanalyst) October 11, 2019
BitMEX is the platform where a lot of the trading action takes place mainly because it allows the placement of highly leveraged positions. Users are able to speculate on Bitcoin’s price with a margin of up to 100x using the BitMEX Bitcoin perpetual contract.
This massive inflow took place right before Bitcoin’s price went through a serious crash which saw its price going down from an intraday high of $8800 to a little over $8300.
The Fake Breakout in Bitcoin’s Price
It’s worth noting that the past 24 hours have been fairly turbulent for Bitcoin’s price.
As seen on the chart, Bitcoin broke out earlier this morning, reaching an intraday high of $8800. Naturally, this might have caused a lot to believe that we are out of the slump of the past few days as it was the highest point for Bitcoin during the last three weeks.
Unfortunately, it turned out to be a fake breakout as the chart marked a huge red candle on the hourly, bringing the price from $8800 to $8330.
Of course, it’s hard to say whether there is a straight correlation between the inflows to BitMEX and the crash in Bitcoin’s price. However, the timing was almost perfect which should at least raise some considerations.
We have yet to see where we will go from here but at the very least, we can see the volatility coming back.
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