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What Part Did BitMex Play In The Ethereum Crash?

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Ethereum crash
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A month ago, traders were confident that the value of ETH would not fall below $300. But the recent fake news that Goldman Sachs was dropping plans for a Bitcoin and Crypto desk, proved to be the catalyst the digital asset needed to fall even further to current levels of $192 at the moment of writing this. All year long, analysts had predicted that ETH would plummet in the markets due to congestion issues on its network. This led to many investors shorting the digital asset through BitMEX. But many did not expect the fall to be overnight as experienced in the last week.

BitMEX Accused of Manipulating Ethereum’s Price

Information around the crypto trader community indicates that the crypto exchange of BitMEX might have had a hand in the Ethereum crash. This was after a conversation on the exchange surfaced of a BitMEX official account (supposedly of Arthur Hayes) advising traders to keep shorting ETH. A screenshot of the conversation has been provided below:

BitMEX CEO’s conversation with users. Source, trustnodes.com

The word ‘punt’ used in the conversation above, is used in informal terms to hint at attempts to make fast profits from an investment regardless of its underlying fundamentals. This means the trader carries a high risk in the trade by speculating instant high returns. In the case of ETH, the decline was inevitable, but the shorts on BitMEX might have contributed to the digital asset falling further.

With respect to BitMEX being accused of manipulating the value of ETH, the platform has barred trading for residents of the U.S, Québec (Canada), Cuba, just to name a few. This then can be interpreted as the exchange evading the corresponding regulatory authorities such as the American SEC. This theory further pushes suspicions that their back-end operations are not as they seem. There could be more to this than meets the eye with BitMEX. Here is the chart of Ethereum ever since it was added to BitMex on August 2nd at around $400.

Chart courtesy of tradingview.com

The Decline of ETH Might Not Be Over

Many crypto analysts believe that the cryptocurrency bear market will not be over till late October this year. Other’s have postulated that we have a long 6 to 12 months of either a bear market or pure sideways movement. Both schools of thought agree that in the short term, Ethereum’s price in the market might drop as low as $155. This is without factoring in any other FUD or fake news in the crypto space.

When we add the prospects of bad news from the SEC postponing or rejecting the CBOE sponsored Bitcoin ETF, we can clearly see that ETH could be headed to a double-digit value very soon. The last time Ethereum was valued at under $100 was back in May 2017 when many of us had not even got into the crypto trading space. All we knew was that there was this new revolutionary technology called blockchain and its biggest advocate was Bitcoin.

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In conclusion, the cryptocurrency exchange of BitMEX could have had a hand in further pushing the value of ETH lower than was expected. This is due to the various investment instruments on the platform that allows traders to bet against their favorite digital asset. Further looking at the situation from the point of view of the exchange’s CEO, Arthur Hayes, ETH was ripe for the picking as the preferred coin to short in the markets. With the market still a bit shaky, ETH might decline a bit further.

Check out the new Global Coin Report YouTube channel as we address all the highlights in crypto and the financial markets. With guests from all over the cryptosphere bringing you news, editorial, and of course, money making opportunities.

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

Ripple XRP Mega Breakout: What’s Next?

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Ripple XRP mega breakout
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The Ripple XRP mega breakout that we were calling for happened and happened much quicker than anyone expected. As we said yesterday:

Nonetheless, IF, Ripple is capable of going ‘topside’ of the .38 figure at any point in the days/weeks ahead, such development, should it occur, would likely trigger its next advance into the .42 – .47 zone, representing a 30-40% move from present levels. On the flip-side, the .25 – .26 area should offer short-term potential support.

XRP is now sitting at .51704  as we write this article this morning, representing gains of 61% since we alerted our readers and our Global Elite email newsletter members.

Ripple XRP Mega Breakout

The Ripple XRP mega breakout is significant because it’s the first time XRP has been above its 50-day moving average since May. Right now, the RSI is approaching 80, so we are in overbought territory and we expect the price to consolidate around the .42 to .47 level before resuming its uptrend.

While some are looking at this as an opportunity to short XRP, we are not of that camp. While some can book some profits and use a trailing stop, any integration of XRP with xRapid has the ability to create a tremendous move in XRP. As Travis Kling said this week on the Off the Chain podcast with Anthony Pompliano, XRP could be the quickest five-bagger investors…

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Altcoins

Litecoin Cash (LCC): The potential mover?

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Litecoin Cash
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Litecoin underwent a hard fork in the past, and that is what led to the creation of Litecoin Cash. Bitcoin has also experienced a hard fork, which has led to the creation of Bitcoin Cash, so this trend is not necessarily brand new.

Forks have occurred pretty often now in the cryptocurrency community, and the perception is that it probably will continue to, as long as the need (forks are often created to overcome issues faced by the originals) remains there.

While the market has been bearish for most of the year, it has been showing some definite signs of life, especially when we look at the kind of price action that has been happening with Ripple recently. Litecoin is also rising in anticipating of its hard fork, which is to be expected.

For those who are unaware, Litecoin Cash was created earlier this year. 10 Litecoin Cash was given to every investor who had 1 Litecoin – and that one move, it’s easy to see, was very massive concerning value.

Charlie Lee, the founder of Litecoin, has come out against LiteCoin Cash, calling it a scam. Many cryptocurrency influencers have come out against Litecoin cash, although there are still others that believe that this is only because the project threatens them.

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Altcoins

The Stage is Set for Stellar XLM vs XRP

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XLM vs XRP
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The digital asset of XRP, did something spectacular on the 18th of September when it shocked the crypto-markets by rising in value by 21%. In a time period that was less than 5 hours, XRP spiked from levels of $0.273 to those of $0.332 and has continued rising. The digital asset is currently valued at $0.36.

xRapid Factor

The reason for the sharp increment in value of XRP was news that the Ripple company was going to launch xRapid in the next month or so. This was after the firm’s head of Regulatory relations for Asia-Pacific and the Middle East, Sagar Sarabhai, made the following comments during a CNBC interview on the 17th of September:

“I am very confident that in the next one month or so you will see some good news coming in where we launch the product live in production.”

Stellar’s Cross-Border Payments

The news of Ripple launching xRapid has come 2 weeks after the Stellar project and IBM, announced that they were entering the industry of cross-border payments through their new service known as IBM Blockchain World-Wire. The new payment settlement service has been quoted as being ‘near instant’ meaning that it will probably rival the transactions time seen in the xRapid pilot tests of 2 – 3 minutes earlier on in the year.

Stellar Acquiring Chain

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