BitMEX, a cryptocurrency exchange, is conducting an investigation into any anomalous trading activity that may have caused a sudden drop in Bitcoin prices on its platform yesterday.
At the end of Monday, the price of Bitcoin on BitMEX dropped to as low as $8,900 in comparison to the USDT stablecoin that is issued by Tether.
Meanwhile, the largest cryptocurrency was trading at more than $66,000 on other exchanges. As approximately 4:10 p.m. Singapore time, the price of Bitcoin on the exchange had almost immediately recovered and was trading at $64,284.
BitMEX has conducted an investigation into the event, according to a spokesman for the firm. The investigation revealed evidence of "aggressive selling behavior involving a very small number of accounts that exceeded expected market ranges." The spokesperson also stated that BitMEX's systems had been operating regularly and that all customer assets are secure.
The initial post on the unexpected selloff was made by an X account known as @syq, which stated that the flash crash occurred at the same time as the sale of 977 Bitcoins, which were valued at approximately $66 million. With regard to the specifics of the issue, the spokeswoman for BitMEX declined to provide any additional comment.
After experiencing a period of wild demand that was driven by a crop of spot ETFs that were launched in the United States on January 11, Bitcoin has plummeted approximately 14% from record highs that were established earlier this month. In the year 2024, the token has continued to increase by about fifty percent.
After the $25 billion Grayscale Bitcoin Trust, also known as GBTC, reported a $643 million outflow, the cryptocurrency had its largest outflow since it turned into an exchange-traded fund on January 11.
Bitcoin experienced a loss of up to 6.3% and traded at $63,140 on Tuesday.
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