Cryptocurrency derivatives exchange BitMEX initiated an investigation into unusual activity following reports of a momentary decline in the Bitcoin (BTC) spot price on its platform.
Around 1 am UTC, users on X flagged an anomaly in BitMEX’s BTC/Tether spot market, which briefly drove Bitcoin prices down to approximately $8,900.
An unknown entity reportedly executed a sell order of over 400 BTC within a short timeframe, prompting BitMEX to confirm the activity on the BTC/USDT spot market and launch an internal investigation.
BitMEX clarified that while withdrawals were temporarily disabled for some accounts as part of the investigation, the platform’s derivatives markets and XBT derivatives contracts remained unaffected.
BitMEX reassured users that its trading platform was operating normally and all funds were secure. The exchange stated that it was actively investigating the matter and would provide updates as necessary.
A BitMEX spokesperson emphasized that despite the platform’s systems operating normally, aggressive selling behavior from a small number of accounts exceeded expected market ranges. The compliance team is thoroughly investigating these accounts.
Concerns Over Bitcoin ETFs
Former BitMEX CEO Arthur Hayes expressed concerns about the potential impact of spot Bitcoin exchange-traded funds (ETFs) on the Bitcoin network. He warned that if Bitcoin ETF issuers hold all BTC, it could disrupt network transactions and incentivize miners to cease operations, leading to the demise of Bitcoin.
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