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BitMEX CEO Arthur Hayes Turns Bullish! BTC at $10,000 “Is My Number” For 2019, He Predicts

It seems that crypto bears are losing ground and the strong 2018 bearish trend is giving way to a period of relative stability prior to an upcoming bull run. Arthur Hayes, CEO of BitMEX expressed this in his “Crypto Trader Digest” of March 22, 2019

Arthur Hayes is known in the crypto verse for his
controversial opinions, which on many occasions have gone against the trends
and sentiment of the community. However, time has proven him right, showing
that as an investor, he knows when to be long or short without letting his
feelings affect his judgment.

The Worst Times Are Over… BTC is [Slowly] Heading To Green Days

After predicting a drop in the BTC to sub-5k figures, Mr. Hayes seems to have joined those who consider that Crypto Winter is over. In the publication, Hayes explains that although it is not yet possible to speak of a bull run, there are signs that point to a small growth by the end of 2019.

“All is not lost; nothing goes up or down in a straight line. 2019 will be boring, but green shoots will appear towards year end.”

The market has already surpassed the critical levels of 2018. This behavior, coupled with the growing enthusiasm around altcoin trading may result in a stimulus that protects the BTC from retesting 2018 supports changing trends for the coming months.

Bitcoin (BTC) Price in BitMEX during 2019. courtesy: Tradingview

Hayes is optimistic. He explains that because of the same
market sentiment, it may be difficult to quickly get out of this “boring”
period of stability. However, once we surpass the 10k mark, 20k seems to be an
easier goal to achieve:

“The 2019 chop will be intense, but the markets will claw back to $10,000. That is a very significant psychological barrier. It’s a nice round sexy number. $20,000 is the ultimate recovery. However, it took 11 months from $1,000 to $10,000, but less than one month from $10,000 to $20,000 back to $10,000.

Melissa Lee peep this. $10,000 is my number, and I’m stickin’ to it.”


Altcoin Season is Here?

Another interesting comment relates to altcoins. Hayes shares the opinion of other analysts like Mati Greenspan, who are confident that the market is reacting positively to trading. Despite some sarcasm, Hayes seems to be positive that the alt season is here:

Do not despair. CRipple is still worth more than zero. And Justin Sun’s new age religion TRON, paired with the Pope CZ, tells us there are those still willing to eat shitcoins with a smile.

The post BitMEX CEO Arthur Hayes Turns Bullish! BTC at $10,000 “Is My Number” For 2019, He Predicts appeared first on Ethereum World News.

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BitMEX CEO Arthur Hayes Says Bitcoin Will Test $10,000 in 2019

CEO of cryptocurrency trading platform BitMEX Arthus Hayes has suggested that Bitcoin will get back to $10,000 this year.

Arthur Hayes, co-founder and CEO of cryptocurrency trading platform BitMEX, has predicted that Bitcoin (BTC) will get back to the $10,000 price point this year. Hayes shared his predictions in a newsletter published on March 22.

According to Hayes, the market recovery will begin in early fourth quarter of 2019. Hayes said:

“The 2019 chop will be intense, but the markets will claw back to $10,000. That is a very significant psychological barrier. […] $20,000 is the ultimate recovery. However, it took 11 months from $1,000 to $10,000, but less than one month from $10,000 to $20,000 back to $10,000.”

Earlier in March, the research arm of BitMEX revealed that its Ethereum Parity full node contained a “potential bug,” reporting that the Parity node “sometimes reports that it is in sync, despite being several hundred thousand blocks behind the chain tip.” The authors claimed that the purported bug could be exploited by an attacker in some circumstances, but states it is “highly unlikely” to happen.

In January, BitMex published research unveiling that the combined value of all the tokens that the analyzed projects had allocated to their own teams went down from $24.2 billion at the time of each individual token’s issuance to about $5 billion.

BitMEX said that the 2018 crypto bear market accounted for 54 percent of the losses, along with $1.5 billion worth of transfers to external addresses and other factors that brought projects’ holdings down even further. The report also highlighted that the historical combined peak value of the tokens controlled by the subject teams was more than $80 billion, using each coin’s individual price peak.

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BitMEX Research Finds ‘Potential Bug’ in Syncing of Ethereum Parity Full Node

BitMEX Research reveals it has found a “potential bug” in its Ethereum Parity full node while working on a new Ethereum node stats tracking website.

The research arm of major cryptocurrency trading platform BitMEX has revealed in a blog post on Wednesday, March 13, that its Ethereum Parity full node contains a “potential bug.”

The alleged bug was discovered while analyzing data from Nodestats.org — BitMEX Research’s new website designed to collect key metrics on Ethereum nodes. In the same blog post, the exchange also announced the launch of Nodestats today, which it created in collaboration with TokenAnalyst.

Nodestats shows key data for Ethereum Parity and Ethereum Geth clients — which BitMEX reports are the two largest Ethereum node client implementations — and compares requirements related to CPU usage, memory (RAM), bandwidth and storage space.

The team started collecting data from the the Ethereum Parity full node on March 1, reporting that as of March 12, the node was still not completely synced with the Ethereum blockchain. The client was reportedly around 450,000 blocks behind, the research reports, noting that “based on its current trajectory, it should catch up with the main chain tip in a few days.”

According to the researchers, however, the slow sync is currently not an issue for the network:

“While the slow initial sync is a potential problem, at least for this system setup, Ethereum has not yet reached a point where the node cannot catch up, as the sync is faster than the rate of blockchain growth.”

However, BitMEX Research further identified a “potential bug” in the client, reporting that the Parity node “sometimes reports that it is in sync, despite being several hundred thousand blocks behind the chain tip.”

The authors claim that the purported bug could be exploited by an attacker in some circumstances, but states it is “highly unlikely” to happen:

“One could argue the impact of this potential bug could be severe […] if exploited by an attacker in the right way. For example a user could accept an incoming payment or smart contract execution as verified, while their node claims to be at the network chain tip. […] The attacker would need to double spend at a height the vulnerable node wrongly thought was the chain tip, which could have a lower proof of work requirement than the main chain tip. Although successful execution of this attack is highly unlikely and users are not likely to be using the highest seen block feature anyway.”

Nodestats is currently connected to five different Ethereum nodes and collects data every five seconds. According to BitMEX’s blog post, the main goal of the project is to provide metrics related to the computational resources each Ethereum node requires.

In other Ethereum news, United States Securities and Exchanges Commission (SEC) Chairman Jay Clayton has recently confirmed that ETH, and cryptocurrencies like it, aren’t securities under U.S. law. Clayton’s statement was in agreement with the stance of the SEC’s director of corporate finance, William Hinman, which was revealed last July.

Also this week, major Ethereum wallet provider MyEtherWallet announced the launch of the alpha version of its new open source Ethereum blockchain explorer, EthVM. The tool shows data from the Ropsten network, an Ethereum testnet, and, once deployed on the mainnet, will be able to compete with Etherscan, the current leading Ethereum block explorer.

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BitMEX CEO: Why Ethereum Could Quickly Hit $200 Again

This year has been a rough one for most cryptocurrencies but some have fared worse than others. Ethereum is one of those heavy sufferers that has lost over 90% since its peak almost a year ago.

According to Arthur Hayes, CEO of Hong Kong based BitMEX, the revival of Ethereum could be just around the corner. Speaking to Cointelegraph Japan he said ETH could quickly return to $200 once new ICO projects start hitting the markets.

According to Sludgefeed which translated the article, Hayes added;

“Once there are new issues, then Ether will rebound aggressively. When the ICO market returns, Ether will quickly test $200. The timing of the ICO rebirth is 12 to 18 months out,”

Hayes has not been a proponent of Ethereum in the past calling it a ‘shitcoin’ and even advising BitMEX users to short it according to Trustnodes which also ran reports of price manipulation.

ICOs have been largely responsible for this year’s Ethereum performance and the fact that it has been outperformed by a number of other crypto assets including Bitcoin, XRP and TRON which have recovered faster. It has been estimated that the ICO war chests are now virtually empty so Ethereum is close to the bottom. December has seen the highest number of ETH withdrawals this year.

At the moment an ICO revival does not look likely but 2019 is likely to be far more positive for crypto than this year has been. Many industry observers have slated a reversal around Q2 next year and a greater interest from institutional investors. This could be the catalyst for more ICOs which would drive Ethereum prices back to $200 very quickly.

At the time of writing Ethereum is trading at $128, down 4.6% on the day. Daily trade volume has dropped from $3 billion to $2.5 as the Christmas rally runs out of steam and starts to reverse the short term trend.

Over the past seven days Ethereum is still up 26% from the $100 it was priced at this time last Thursday according to coinmarketcap.com. Since its 2018 low of around $83 on December 15 Ethereum has recovered 54% to current levels but it is still at its lowest level for 18 months or so.

In terms of market capitalization it currently has $13.4 billion, which is still nearly $2 billion behind XRP in second place. Ethereum has a long way to go to recover and any catalyst is welcome at the moment.

The post BitMEX CEO: Why Ethereum Could Quickly Hit $200 Again appeared first on Ethereum World News.

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BitMEX and Hong-Kong Listed Wine Firm Plan Joint Foray Into New Japanese Crypto Exchange

Crypto exchange BitMEX and French wine retailer Madison Holdings Group are reportedly partnering to acquire a majority stake in BitOcean.

Crypto exchange BitMEX and a fine French wine retailer are reportedly partnering to acquire a majority stake of licensed — but as yet inactive — Japanese crypto exchange BitOcean. Cointelegraph Japan reported on the potential partnership on Dec. 21.

Madison Holdings Group, which is currently listed on the Growth Enterprise Market (GEM) of the Hong Kong Stock Exchange, reportedly plans to acquire a 62.7 percent stake of BitOcean for 1.68 billion yen ($15.12 million) — paid to existing third-party stakeholders — in addition to a further $15 million in extra fees. The deal, as yet incomplete, is reportedly to be made via a subsidiary, Madison Labs, according to Madison’s filing to GEM earlier this month.

BitOcean is a crypto exchange that is officially registered with the Japanese regulator, the Financial Services Agency (FSA), even as it has yet to go live with its trading services.

The BitOcean deal notably comes in parallel to plans for Madison Labs’ majority acquisition by the parent company of major crypto trading platform BitMEX. According to a report from Hong Kong English-language newspaper South China Morning Post (SCMP) on Dec. 26, HDR Cadenza Management — a subsidiary of BitMEX owner HDR Global Trading — is considering acquiring a 51 per cent stake of Madison Labs, at a cost of $17.14 million.

As CT Japan reports, if and when both deals are finalized, the move would make BitMEX a partner and indirect shareholder in Madison’s crypto trading entry. CT Japan writes that Madison’s joint foray into BitOcean with HDR will aim to harness BitMEX’s technology and accumulated know-how in regard to establishing an enterprise-grade crypto derivatives trading infrastructure.

BitMEX currently offers crypto futures and indefinite contracts, as well as leveraged trading — regulation of which is currently being debated within the country, as CT Japan further notes.

Raymond Ting Pang-wan, chairman at Madison, told SCMP that the firm had opted for an investment in BitOcean due to its licensed status and the country’s robust crypto regulatory framework. Ting further told SCMP that while Madison’s wine business is stable and profitable, it is hard to scale, noting:

“This is why we have to diversify into financial technology and the cryptocurrency business — to achieve a better return for our shareholders.”

He also added that as crypto and blockchain become “more popular,” entering the sector will allow the firm to “expand” its income source.

As previously reported, Japan has both a self-regulatory body, the Virtual Currency Exchange Association (JVCEA), and a thoroughgoing procedure for crypto exchange operators to acquire a license from the FSA. The organization has exercised intensified oversight of the sector since this January’s industry record-breaking $532 million hack of domestic trading platform Coincheck.

While a license has been mandatory for all crypto exchanges operating within Japan since the amendment of the country’s Payment Services Act back in April 2017, the FSA continued to ratchet up requirements for applicants throughout 2018; as many as 200 operators are reported to currently be awaiting a license.

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BitMEX CEO: Ethereum ‘Will Quickly Test $200’ When ICO Market Returns

A rebirth of ICOs is on the cards by 2020, and with it a new lease on life for Ethereum, says BitMEX CEO Arthur Hayes.

Initial coin offerings (ICO) will return within “18 months” and Ethereum (ETH) will “rebound aggressively,” BitMEX CEO Arthur Hayes told Cointelegraph Japan Dec. 26.

BitMEX is a Hong Kong-based cryptocurrency trading platform that has become one of the largest trading platforms in the world by volume.

Speaking in an exclusive interview, Hayes forecast a return to form for 2018’s “dead” ICO markets.

“The use case for Ether is primarily ICOs. That market is dead right now,” he said, adding:

“Once there are new issues, then Ether will rebound aggressively. When the ICO market returns, Ether will quickly test $200. The timing of the ICO rebirth is 12 to 18 months out.”

Hayes made the comments following a now rare day of stability across cryptocurrency markets, with ETH/USD staying range bound within 1 percent of $129 after doubling in a week.

One of the top performers in the short term, the once-largest altcoin has seen losses of over 90 percent in 2018.

In the coming 12-18 months, however, Hayes first predicts stablecoins will have their time in the limelight before an ICO resurgence.

“Security tokens and stablecoins will prove attractive sirens for investors in 2019,” he continued, noting:

“While their fundamental raison d’etre is flawed, investors in this time of pain will latch onto anything they believe will be their ticket to easy riches.”

He did not elaborate on whether that market will implode like that of the 2017 ICO boom.

For Bitcoin (BTC), Hayes suggested a fairly small trading corridor for next year — between $1,000 and $10,000. Some sources have argued institutional investors engaging in Bitcoin through new financial instruments will take the price much higher.

Last weekend, Justin Sun, CEO of decentralized application (DApp) development platform TRON (TRX), claimed ETH was “slowly imploding.”

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BitMEX CEO’s Call For Double-Digit Ethereum Comes True: ETH At $90

Arthur Hayes: Ethereum (ETH), A “Double Digit S*hitcoin”

In late-August of this year, Arthur Hayes, the chief executive at BitMEX, the world’s foremost crypto mercantile exchange, took to his firm’s in-house blog to tout some controversial sentiment. In an extensive post, the former institutional trader began his Ethereum (ETH) bash by telling a personal story, hyperbolized to convey a point.

The BitMEX CEO discussed a s*hitcoin named Pepe Cash, an evident combination of a popular internet meme and Bitcoin Cash, and somehow, someway, related it back to Ethereum, which Hayes evidently holds a grudge against. Hayes, imbuing the op-ed with his normal swagger — unfiltered statements, crazy calls, and all — even noted that ETH could “go from a 3-digit to a 2-digit s*hitcoin.”

Backing his statement, which was inflammatory to put it lightly, Hayes drew attention to ICO-funded projects, many of which based their operations around Ethereum, venture capitalists “turned-hedge-fund-punters,” and crypto-centric funds.

Hayes’ chastising of Ether was quite extensive, but the long and the short of it is Hayes believed that there was enough prospective selling pressure to push the asset below $100, which was situated at $200 at BitMEX’s time of press.

While many proponents of Ethereum and “altcoin maximalists” laughed at the industry savant for his sentiment, lambasting the prediction (of sorts) as foolhardy, on Thursday, the asset finally showed signs of falling to double-digits.

At first, during the wee hours of Thursday morning, ETH suddenly flash crashed to $13 on Coinbase Pro — straight out of left field.

Although this move wasn’t backed by a clear catalyst, nor did Coinbase recently a statement on the matter, a number of Ether’s skeptics took to Twitter to claim that the asset’s time was up. Decentralist Kevin Pham, a zealous Bitcoin maximalist and anti-ETH fanatic, took to his Twitter following to claim that both the asset and Coinbase were a “s*hitshow.”

Others also chimed in, with Justin Sun of Tron even telling developers to “plz leave Ethereum and join Tron.” NVK, a pseudonymous crypto commentator, also expressed his/her thoughts, noting that at its core, the aforementioned project is “centralized,” before asking his followers to use Bitcoin and its recently-established Liquid Network to issue tokens.

While ETH subsequently recovered to $100, with those who bought in at the bottom making 770% near-instantly, the asset continued lower on Thursday, following BTC as it slid below $3,500. Eventually, the asset fell under $100, after putting up a fight at that key psychological, technical, and fundamental level for hours on end. As BTC continues to stumble, recently moving under $3,350 in a seemingly endless downtrend, ETH has followed suit, moving to $98 before finding itself rapidly falling to $88, where it has found itself.

So for the second time in weeks, it seems that Arthur Hayes has made a successful prediction against crypto, as the member of BitMEX’s top brass called for BTC to move under $5,000 previously.

Keeping all this tumult in mind, a number of analysts and market commentators took to Twitter to tout their thoughts. Alex Kruger, a prominent crypto-friendly macro markets analyst/investor, posted the photo above, evidently summing up Ether holders’ sentiment in a simple image.

Ethereum Believers Maintain Faith

Although the sentiment touted by traders is undoubtedly bearish, a number of diehard believers in this “world computer” project have maintained their bullish sentiment. Tom Lee, head of research at Fundstrat, recently took to Blockshow Asia to claim that Bitcoin, XRP, and Ethereum all have staying power, due to their status as established networks with purportedly bonafide use cases.

Mihailo Bjelic, a blockchain researcher, took to Twitter to claim that while ConsenSys, an Ethereum development consortium recently downsized, it remains a booming project.

ShapeShift CEO Erik Voorhees, responding to criticism regarding ETH from Peter Schiff, a Bitcoin hater, joked that “[Ether] HODLers are crying all the way to the bank… although they don’t need banks anymore, either.”

Title Image Courtesy of Pedro Gabriel Miziara on Unsplash

The post BitMEX CEO’s Call For Double-Digit Ethereum Comes True: ETH At $90 appeared first on Ethereum World News.

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BitMEX CEO’s Call For Double-Digit Ethereum Comes True: ETH At $90

Arthur Hayes: Ethereum (ETH), A “Double Digit S*hitcoin”

In late-August of this year, Arthur Hayes, the chief executive at BitMEX, the world’s foremost crypto mercantile exchange, took to his firm’s in-house blog to tout some controversial sentiment. In an extensive post, the former institutional trader began his Ethereum (ETH) bash by telling a personal story, hyperbolized to convey a point.

The BitMEX CEO discussed a s*hitcoin named Pepe Cash, an evident combination of a popular internet meme and Bitcoin Cash, and somehow, someway, related it back to Ethereum, which Hayes evidently holds a grudge against. Hayes, imbuing the op-ed with his normal swagger — unfiltered statements, crazy calls, and all — even noted that ETH could “go from a 3-digit to a 2-digit s*hitcoin.”

Backing his statement, which was inflammatory to put it lightly, Hayes drew attention to ICO-funded projects, many of which based their operations around Ethereum, venture capitalists “turned-hedge-fund-punters,” and crypto-centric funds.

Hayes’ chastising of Ether was quite extensive, but the long and the short of it is Hayes believed that there was enough prospective selling pressure to push the asset below $100, which was situated at $200 at BitMEX’s time of press.

While many proponents of Ethereum and “altcoin maximalists” laughed at the industry savant for his sentiment, lambasting the prediction (of sorts) as foolhardy, on Thursday, the asset finally showed signs of falling to double-digits.

At first, during the wee hours of Thursday morning, ETH suddenly flash crashed to $13 on Coinbase Pro — straight out of left field.

Although this move wasn’t backed by a clear catalyst, nor did Coinbase recently a statement on the matter, a number of Ether’s skeptics took to Twitter to claim that the asset’s time was up. Decentralist Kevin Pham, a zealous Bitcoin maximalist and anti-ETH fanatic, took to his Twitter following to claim that both the asset and Coinbase were a “s*hitshow.”

Others also chimed in, with Justin Sun of Tron even telling developers to “plz leave Ethereum and join Tron.” NVK, a pseudonymous crypto commentator, also expressed his/her thoughts, noting that at its core, the aforementioned project is “centralized,” before asking his followers to use Bitcoin and its recently-established Liquid Network to issue tokens.

While ETH subsequently recovered to $100, with those who bought in at the bottom making 770% near-instantly, the asset continued lower on Thursday, following BTC as it slid below $3,500. Eventually, the asset fell under $100, after putting up a fight at that key psychological, technical, and fundamental level for hours on end. As BTC continues to stumble, recently moving under $3,350 in a seemingly endless downtrend, ETH has followed suit, moving to $98 before finding itself rapidly falling to $88, where it has found itself.

So for the second time in weeks, it seems that Arthur Hayes has made a successful prediction against crypto, as the member of BitMEX’s top brass called for BTC to move under $5,000 previously.

Keeping all this tumult in mind, a number of analysts and market commentators took to Twitter to tout their thoughts. Alex Kruger, a prominent crypto-friendly macro markets analyst/investor, posted the photo above, evidently summing up Ether holders’ sentiment in a simple image.

Ethereum Believers Maintain Faith

Although the sentiment touted by traders is undoubtedly bearish, a number of diehard believers in this “world computer” project have maintained their bullish sentiment. Tom Lee, head of research at Fundstrat, recently took to Blockshow Asia to claim that Bitcoin, XRP, and Ethereum all have staying power, due to their status as established networks with purportedly bonafide use cases.

Mihailo Bjelic, a blockchain researcher, took to Twitter to claim that while ConsenSys, an Ethereum development consortium recently downsized, it remains a booming project.

ShapeShift CEO Erik Voorhees, responding to criticism regarding ETH from Peter Schiff, a Bitcoin hater, joked that “[Ether] HODLers are crying all the way to the bank… although they don’t need banks anymore, either.”

Title Image Courtesy of Pedro Gabriel Miziara on Unsplash
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BitMEX Leases The World’s Most Exorbitant Offices In Hong Kong

BitMEX has hit the crypto printing press again, with the Hong Kong Economic Times, a local newspaper, reporting that the exchange had signed an agreement to rent out the world’s most expensive office spaces.

BitMEX, founded by former Citigroup trader Arthur Hayes has reportedly leased out the whole 45th floor of the Cheung Kong Center. This information comes anonymously via individuals allegedly knowledgeable about the firm’s plans.

While any piece of Hong Kong real estate is already expensive in and of itself, Cheung Kong Center, which is also home to Goldman Sachs, Barclays, the Bank of America and Bloomberg, has one of the highest $/Sq.ft ratios in the world.

In January, when Bloomberg interviewed Hayes, they discovered that the firm’s Hong Kong offices at the time were located in a lesser-known warehouse district, where rent is HK$25 ($3.18) for each square foot. But with the firm’s move to Cheung Kong, which is smack dab in one of Hong Kong’s flashiest districts, BitMEX will need to pay a staggering HK$225 per square foot, a near ten-fold increase from the rent requirements of their previous office.

According to the Hong Kong Economic Times, the outlet that first broke this news, the 45th floor consists of 20,000 square feet, which will mean that the exchange will pay the equivalent of over $573,000 a month in rent.

Some legacy market cynics see this as sort of ‘power play’, with BitMEX’s appearance in such an office space alluding to the fact that crypto is here, and is here to stay for the long haul. Others see this as a strategic move, with such a move putting the exchange within arms reach of the most influential financial and technology firms in the world. But most importantly, this move shows that BitMEX has still been raking copious amounts of profit in, even as the crypto market has essentially fallen off a sharp, tall cliff.

BitMEX’s Growing Influence Over The Crypto Industry

As reported by Ethereum World News, the market surged after BitMEX announced that it would be temporarily shutting down to do maintence work on its engine. While this announcement may seem mundane on the surface, Bitcoin rose by nearly $500 in the minutes following the commencement of BitMEX’s downtime. Altcoins followed closely behind the market leader, posting similar gains in terms of percentage.

Even as BitMEX’s one-hour of downtime finished, the market held its gains (temporarily at least), with Bitcoin finding a place to stand at $6,700. While some speculated that this bout of positive price action was just an untimely coincidence, many noted that such a move could only be attributed to the scheduled maintence of the world’s largest Bitcoin exchange.

Issuing a tweet regarding this occurrence, Crypto commentator and ”s***poster’ EmptyBeerBottle drew attention to the fact that this move indicates the vast amount of influence the exchange has over the market. As such, the crypto personality noted that BitMEX should not be discredited, as the exchange has evidently become an integral part of this nascent industry and market.

Photo by Jason Wong on Unsplash

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BitMEX: Friend or Foe to Bitcoin (BTC)?

The cat is out of the bag and a lot of crypto traders and enthusiasts noticed what happened when the popular crypto exchange of BitMEX went offline for a brief period during a scheduled maintenance last night. The exchange that has traded over 1 Million Bitcoin (BTC) in a day on two occasions, has been the fan favorite for traders who are taking advantage of the bear market and want to short the digital assets of Bitcoin (BTC), Bitcoin Cash (BCH), Cardano (ADA), EOS, Ethereum (ETH), Tron (TRX) and XRP.

To quote an anonymous trader on Telegram:

Trading over there is as fast as greased lightning.

But we are digressing. During the scheduled maintenance that lasted from 01:00 UTC to 02:00 UTC, something spectacular happened to BTC. Before the maintenance started, BTC was valued at $6,463. Thirty minutes into the maintenance, BTC had spiked to $6,816: a 5.5% increment.

By the end of the hour, it was valued at $6,708. The King of Crypto is currently valued at $6,667 and up 3.59% in the last 24 hours.

BTC spike during BitMEX maintenance. Source, coinmarketcap.com

Friend or Foe to Bitcoin

The million dollar question from this spike in the value of BTC is if BitMEX is a friend or enemy to the general ecosystem of Bitcoin in the crypto markets. One argument that has been postulated is that during that one hour of maintenance on BitMEX, a majority of the short positions in the global crypto markets were inactive. This then means the Bulls had a chance to go long on BTC thus triggering a buying spree and a price increment.

This theory then goes on to conclude that shorting Bitcoin and other digital assets is simply destroying the ecosystem and even preventing the SEC from approving ETFs based on the fact that the markets are too volatile. The SEC has the sole mandate of protecting American investors from shady trading and the crypto markets are a bit ‘crazy’ sometimes.

The other side of the argument is that the team at BitMEX have thought outside the box and offered investment products that allow traders to bet against their digital assets rather than just waiting for them to moon. With such new investment products comes great profits for the exchange as can be seen from recent reports of the firm renting the most expensive offices in Hong Kong.

One co-founder of the platform, Ben Delo, has been crowned Britain’s youngest Bitcoin Billionaire at the age of 34. His story can be likened to how Zuckerberg started facebook or how the two Steve’s founded Apple: they all took and idea and ran with it till the end.

In conclusion, the crypto-verse has been expanding at a rate that not even the traditional Wallstreet experts can explain 100%. It might be due to the fact that cryptocurrencies are decentralized and regulation is a headache by governments with officials who are yet to understand the underlying technology. With such rapid growth expansion comes those opportunities that a few can capitalize on. BitMEX is one such exchange that has started offering products that the crypto-traders want but at what cost to the general ecosystem of the crypto-markets?

Disclaimer: This article is not meant to give financial advice. Any opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available

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