Bitcoin: Crash due to regulation?Bitcoin’s soaring came to an abrupt stop on Thursday. What happened? and will the price drop even lower?
Actually, an article from me was supposed to appear next week but because of these circumstances, I wanted to briefly write all the information that I got regarding the drop in the BTC price.
To take the wind out of the sails of some people, I don’t think it’s because Trump was tested positive on Corona, If you’ve been following me for a while you may remember my Article “Will Bitcoin hit 20k again?” were I pointed out how Bitmex liquidated $250.000.000 in longs and shorts just in 7 Days.
In my opinion, Bitcoin’s soaring was halted Thursday after the United States Commodity Future Trading Commission (CFTC) filed an injunction against the crypto derivatives exchange BitMEX.
Bitcoin (BTC) lost nearly $ 500 immediately after the announcement. The reason for the uncertainty among investors is that BitMEX is one of the top 5 Bitcoin derivatives exchanges with a daily trading volume of US $ 2 billion and therefore has a certain market relevance.The BitMEX derivatives exchange
You have to know that on the derivatives exchange BitMEX mainly futures contracts, so no “real” Bitcoins (BTC) are traded. However, in order to participate in derivatives trading and bet on future Bitcoin rates, investors must deposit bitcoins.
The profits and losses are also offset in BTC and the withdrawals are also made via Bitcoin (BTC). The bottom line is that investors can trade on BitMEX with a leverage of 100 and thus de facto move 100 times the amount deposited. Great opportunities face great risks (total loss).BitMEX operations are said to be illegal
According to data from the analysis company CoinMetrics, BitMEX itself manages around 193,000 Bitcoins (BTC) worth around 2 billion US dollars. Should the US regulatory authorities succeed in closing BitMEX entire...