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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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Altcoins

3 Cryptocurrencies Most Likely to Follow Bitcoin’s Performance

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For more than a year, the cryptocurrency market has been dominated by bearish influence, with most coins seeing constant drops, or stagnation, at best. This all changed in the past few months, starting with Bitcoin which once again started leading the market up, bringing one minor rally after another.

BTC itself experienced massive losses in 2018, with its price going down by around 84%. Most other coins among the top 10 mirrored its performance, and some of them experienced even greater losses. However, now that Bitcoin sees gains again, these cryptocurrencies are still following its example, and many of them have seen massive breakouts. Some of the more notable altcoins that followed Bitcoin’s recent example are Ethereum (ETH), Stellar (XLM), and Cardano (ADA).

Ethereum performance mirroring Bitcoin’s price

As mentioned, Bitcoin led every rally so far, but before it did, its price first went through what is known as an ascending triangle pattern. The pattern held for around five months, which is exceptionally long for the crypto world. However, once the pattern was finally broken — the coin’s price skyrocketed, more than doubling itself within only two months.

One thing to note is that Ethereum performed in pretty much the same fashion. After five months of struggle and confusion for investors, the second largest cryptocurrency also managed to break the pattern and skyrocket as well. It…

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Bitcoin

4 Reasons Why the New Bitcoin Rally Is Unlikely to Stop Now

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After more than a year of declining prices, the crypto market is finally seeing a period of serious recovery — one that has already brought digital currencies to heights not seen in over half a year now.

Only days ago, Bitcoin surged past several major resistance levels and managed to exceed its yearly high of over $8,000. Already, many skeptics are predicting the soon end of the bull run, and the possibility of yet another sharp decline. However, there are signs that suggest otherwise — that this bull run is only getting started, and that it will not end anytime soon.

There are four reasons why this is the case, and they are as follows:

1) Bakkt

There is the long-awaited Bitcoin futures exchange, Bakkt, which recently announced that the July test date for Bitcoin futures is soon to be set. Bakkt’s launch was delayed multiple times already, so the announcement came as quite a surprise. However, it appears that it will happen quite soon, after all.

As soon as its arrival becomes a certainty, Bitcoin will likely skyrocket even further, just like gold did when gold ETF appeared in 2013.

2) Bitcoin completely ignored the hacking of Binance

Binance has been the largest crypto exchange by trading volume for a while now, and as such, many expected that, if anything were to happen to it, Bitcoin…

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Bitcoin

The New Rally Has Arrived: Crypto Market Cap Goes up by $24 Billion Within a Day

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The crypto market’s recovery progresses further, and at a rapid pace, at that. Bitcoin has just surpassed the $8,000 mark, which is the first time its price has been that high since July of last year. In addition, the entire crypto market is making billions within hours.

Bitcoin (BTC) sees another serious surge

In the past 24 hours, the total crypto market cap has gone up by around $24 billion. Meanwhile, BTC price has grown by $1,000 within the same period, as the largest coin traded barely above $7,000 on early Monday. At the time of writing, the coin’s price sits at $8.014.31, with a 14% growth in the last 24 hours. Meanwhile, the BTC market cap has gone up to $141.85 billion, and even the coin’s trading volume surged to over $31 billion.

While many are wondering whether this is a return to the massive heights seen back in 2017 or only a temporary surge which will soon see a correction — no signs of an upcoming decline have been noticed as of yet. In fact, new heights were made and then exceeded multiple times in the past week, with a massive 33% gain during that time. And, with Bitcoin’s dominance at 60%, many are expecting that massive altcoin surges are to be expected as well.

The growth of altcoins can already be seen, as Bitcoin

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