BitMEX, a prominent cryptocurrency exchange, recently launched an internal investigation in response to a sudden and dramatic decrease in Bitcoin‘s value on its platform. On Monday, Bitcoin’s valuation against the USDT stablecoin on BitMEX plummeted to $8,900, a stark contrast to its value above $66,000 on other trading platforms. However, Bitcoin’s price on BitMEX swiftly rebounded to normal levels and has since mirrored broader market trends.
In light of this anomaly, BitMEX identified unusual “aggressive selling behavior from a few accounts” during its investigation. The exchange assured users that its operations remained intact, and their assets remained secure throughout the incident.
BitMEX clarified that it does not utilize its own market makers. Instead, it pointed out that the significant and rapid sell orders experienced were overwhelming for both market makers and traders on the platform to manage effectively. Despite the abrupt decline in Bitcoin’s value, BitMEX emphasized that its derivatives trading remained unaffected and did not result in any forced sell-offs. Additionally, the exchange reaffirmed that it continued to process deposits and withdrawals as usual, with transactions typically completing within minutes.
The unexpected market movement was initially brought to attention by a user with the handle @syq on X, who highlighted a 977 Bitcoin sale valued at approximately $66 million. Some BitMEX users alleged that the exchange had suspended withdrawals, but BitMEX clarified that this action was only applicable to accounts under investigation.
In a related development, Bitcoin experienced a drop of up to 7.3% to $62,458 on Tuesday, following a substantial outflow from the Grayscale Bitcoin Trust (GBTC). This outflow marked the largest since the transition to an Exchange-Traded Fund (ETF) on Jan. 11, amounting to $643 million.
