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Why Bitcoin (BTC) Spiked After BitMEX Shut Down

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At exactly 01:00 UTC, popular crypto exchange of BitMEX initiated a scheduled maintenance. By 01:30 UTC, the maintenance on the platform had been completed. But during this 30-minute window, something wonderful had happened to the King of Crypto – Bitcoin (BTC) – in the crypto markets.

Moments before maintenance had started, Bitcoin was valued at $6,463. In the 30 minutes during the maintenance at BitMEX, Bitcoin had spiked to a new high of $6,816 according to coinmarketcap.com. This is an increment of 5.46% in 30 minutes. BTC would then drop to $6,713 after another 30 minutes, a slight drop of 1.5%. Since then, the King of Crypto has been struggling to maintain these values and is currently trading at $6,679 and up 3.57% in the last 24 hours.

BTC Spike during BitMex maintenance. Source, coinmarketcap.com

BitMEX Resumes Trading Amidst Reports of Traders Getting REKT

BitMEX would resume trading at 02:00 UTC after the exchange experienced a large DDoS attack upon restarting Web Services. However, the damage had already been done with some individual traders, who had not anticipated the spike, losing on their trades by as much as 60%. One trader stated the following via twitter:

“[Thank you] BITMEX, I lost %60 of my balance! THANK YOU!”

Another would voice his disappointment as follows:

“Completely wrong you guys let all those orders that had SL get liquidated. You stated there was a DDoS attack which admitted that people could not log in to cancel orders yet you resumed trading and let everyone get liquidated. You completely robbed your customers.”

Another tweet would mock the event by stating the following:

“Bitmex announces partnership with Bitconnect”

So What Exactly Happened Today on BitMEX?

The following are some possible reasons for what happened during the one hour period BitMEX was down during maintenance

  • Savvy Traders Buying when Maintenance Started and Selling When Done

This is one of those easy explanations. All crypto traders know that BitMEX can trade as much as 1 Million Bitcoin in volume per day and most of these trades are shorts on the platform. This then meant that once offline, the shorts on BitMEX would not exist and there was a chance to briefly buy and sell at a profit before the platform was up and running again.

  • Short Positions Being Liquidated Leaving BTC to flourish

As was seen with one complaint on BitMEX above, the DDoS attack made it possible for trading to still continue even when traders were locked out of their accounts. Given the fact that they did not have time to cancel their orders, there short positions on BitMEX were liquidated at a loss leaving the market and profits open for traders who want to go long on BTC.

  • Whale Manipulation Given the Nature of the Spike

This explanation is very much like the first one where traders had a one hour window to trade long on Bitcoin. This theory, however, puts forth the idea that it was Whales that pumped the price hoping for individual traders to jump in on the pump due to fear of mission out. The Whales would then exit, leaving the individual traders with a depreciating BTC.

  • Planned DDoS combined with Manipulation

With this theory, we find the most ambitious plot to prolong the maintenance on BitMEX through a DDoS attack. This would then pave the way for whales to keep pumping the price and waiting for the right time to bail with considerable profits.

In conclusion, and on the bright side of the recent event, it was a relief seeing BTC at levels of $6,800 in a largely bear market and with a pending Bitcoin ETF decision by tomorrow, the 23rd of August.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

The rise of the crypto casinos

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In the hyper-competitive world of online casinos, operators are always looking for ways to stand out from the crowd. The most usual methods include using distinctive branding, offering generous bonuses and making sure that they are on all of the major so-called affiliate sites where players can compare and contrast casinos’ different offerings.

But now a whole new generation of casinos are starting to emerge – ones whose key difference isn’t what and how you play, but more in how you pay.

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Of course, it’s the first of these cryptocurrencies that has really grabbed the headlines and led the way with its meteoric performance in 2017 when it seemed like its $20,000 value was just the start of the story. Admittedly, this was short-lived and the value quickly fell back to a more sustainable level but, if it achieved one thing, it was to cement this exciting new kind of currency in the consciousness of the general public.

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Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

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The Bitcoin Revolution: Everything You Need To Know To Take Profits

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Bitcoin is soaring high in the cryptomarket once again, and experts are expecting a return of the bullish trend of 2017. The current Bitcoin price is $7,615 as of 23 May 6:56 AM UTC. This significant jump comes just six months after the Bitcoin price plummeted to a low of $3150 in December 2018. Since then, Bitcoin has experienced steady growth and gain in the market. However, in the last 30 days, the Bitcoin price peaked to $8,320.82, its highest price ever. This phenomenal jump occurred in a span of only 10 days breaking the Bitcoin record so far of significant gains made in short time frames. This positive growth has led to experts forecasting the Bitcoin price to hit the $20,000 mark by the end of this year.

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