BitMEX recently found themselves investigating an abnormal occurrence on their Bitcoin spot market. Reports surfaced about a user making significant sell orders on the exchange, causing chaos in the market. More than 400 BTC was dumped on BitMEX, leading to an 87% crash in the price of Bitcoin to as low as $8900 before bouncing back to its original value. Despite this turmoil, BitMEX assured users that their derivative markets and index price were unaffected, emphasizing that the platform was operating normally and all funds were secure.
Following the erratic behavior on the Bitcoin spot market, the price of Bitcoin faced additional challenges as it plummeted to approximately $63,000 during Asian trading hours, representing a decline of over 6%. This downward trend was part of a broader market downturn that wiped out more than $600 million from crypto futures traders. Not only did Bitcoin suffer losses, but other major cryptocurrencies such as Ethereum, Solana, BNB, Cardano, and Avalanche also experienced declines exceeding 5%. Some analysts attribute this dip to typical market behavior leading up to the upcoming halving event.
Crypto analyst Michaël van de Poppe noted a pattern similar to past halving events, suggesting that Bitcoin’s price usually peaks approximately five weeks before the halving, followed by a period of consolidation and potential altcoin activity. The highly anticipated Bitcoin halving is scheduled for April 20, with less than 5,000 blocks left until the event. As the market prepares for this significant event, traders are closely monitoring price movements and making strategic decisions to mitigate risks amid market uncertainties.
The recent market downturn took a toll on 240,000 crypto traders, resulting in substantial losses totaling a staggering $623 million in just 24 hours. According to Coinglass data, long traders suffered the most significant losses, accounting for $516 million, while short traders faced liquidations amounting to $107 million. Bitcoin traders bore the brunt of the liquidations, with over $150 million in losses, followed by Ethereum traders with $106 million in liquidations. Among the notable liquidation orders was a $12 million long position on Bitcoin executed through the OKX crypto exchange.
The Bitcoin market’s recent turmoil and subsequent losses highlight the volatility and unpredictability of the cryptocurrency market. Traders and investors must remain vigilant, conduct thorough research, and implement risk management strategies to navigate the ever-changing landscape of digital assets.