Cryptocurrency exchange and crypto derivatives trading platform BitMEX has launched an investigation into the anomalous phenomenon with the price of BTC, as users are extremely surprised by the strange collapse of the Bitcoin exchange rate.
The crypto exchange's users wrote on social media and X tonight (around 01:00 GMT) about the abnormally low BTC/USDT exchange rate on the BitMEX platform. They pointed out that the exchange rate dropped to $8,900 in a few minutes.
A large transaction for 400 BTC from an unknown address was recorded. BitMEX confirmed a large sell order on the BTC/USDT spot market and announced on social media that it is currently investigating large sell orders.
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BitMEX insisted in a statement that its derivatives markets and XBT derivative contract prices were not affected by the fluctuations: "The trading platform is operating as usual, and all funds are safe."
The BitMEX XBT Index, which tracks the price of Bitcoin, serves as a benchmark for traders on the platform. Meanwhile, the XBT/USDT pair represents the price of Bitcoin, with USDT being the world's leading stablecoin pegged to the dollar at a 1:1 ratio.
According to the TradingView platform, the collapse began at 22:40 UTC, with prices falling to $8,900 in just two minutes, a record low since 2020. However, prices recovered just as quickly, with the rate back up to $67,000 by 22:50 UTC. It's worth noting that during this abnormal jump on BitMEX, the global market price of Bitcoin remained stable at around $67,400.
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According to crypto analyst @syq, the unknown whale sold over 400 BTC in batches of 10-50 BTC within two hours. He also wrote that BitMEX has disabled withdrawals from some accounts.
However, the crypto exchange clarified that it did not disable withdrawals for all users, but only blocked suspicious accounts. "To clarify, we did NOT disable withdrawals for all users, but only for a few accounts involved in the investigation."
Members of the crypto community believe that large sell orders, mostly from institutional investors or whales, provoke a rapid drop in prices. That's apparently what happened this time. Users on X are actively discussing the strange event on BitMEX.
BitMEX has confirmed that its trading platform is working properly and that all funds are safe. Former CEO Arthur Hayes previously suggested that Bitcoin spot exchange-traded funds (ETFs) could "completely destroy" Bitcoin if they were too successful.
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