BitMEX, a cryptocurrency derivatives exchange, has launched an investigation into unusual activity after users reported a temporary drop in the price of Bitcoin on its platform. The incident occurred at around 1 am UTC when users noticed an anomaly in BitMEX’s BTC/Tether spot market, causing the price of Bitcoin to briefly plummet to around $8,900. It was discovered that an unknown entity had sold over 400 BTC within a short period of time. BitMEX confirmed the large sell order on the BTC/USDT spot market and began an internal investigation. The exchange stated that its derivatives markets and the prices of its XBT derivatives contracts were unaffected by the fluctuation. The researcher, Syq, revealed that BitMEX had temporarily disabled withdrawals from some accounts in response to the incident. BitMEX assured its users that its trading platform is operating normally and all funds are secure. The exchange has yet to comment on the situation to Cointelegraph. Former BitMEX CEO, Arthur Hayes, expressed concerns that spot Bitcoin exchange-traded funds (ETFs) could have a detrimental impact on Bitcoin if they become too successful. Hayes suggested that if ETF issuers hold all the BTC, it could reduce the number of transactions on the network and discourage miners from validating transactions, potentially leading to the demise of Bitcoin.
Whale at BitMEX Causes Bitcoin Price to Plummet to $8.9K During Significant Sell-Off of BTC