One of the most popular Bitcoin margin trading exchanges, BitMEX, saw a 24-hour net inflow of around $16 million. This took place right before Bitcoin’s price fell more than $450 in less than an hour.
BitMEX Sees $16M Net Inflow
According to a well-known cryptocurrency monitoring resource, TokenAnalyst, one of the most popular Bitcoin margin trading exchanges, BitMEX, saw a 24-hour net inflow of $16 million right before Bitcoin’s price went south.
🚨 24H BTC on-chain flows:#binance $69M in | $61M out#bitmex $26M in | $10M out#bitfinex $6M in | $5M out#bitstamp $26M in | $36M out#bittrex $4M in | $4M out#poloniex $3M in | $3M out#kraken $26M in | $24M out#huobi $54M in | $74M out
More @ http://t.co/u90eafzR5J
— TokenAnalyst (@thetokenanalyst) October 11, 2019
BitMEX is particularly popular because it allows the placement of highly leveraged positions. Users are able to speculate on Bitcoin’s price with margins of up to 100x using BitMEX’s Bitcoin perpetual contracts.
Bitcoin’s price fell today from an intraday high of $8,800 to a little over $8,300.
Bitcoin’s Fake Breakout
The past 24 hours have been fairly turbulent for Bitcoin’s price.
As seen on the chart, Bitcoin broke out earlier this morning, reaching an intraday high of $8,800. This might have caused many to believe that we were out of the slump of the past few days, as it was the highest point for Bitcoin during the last three weeks.
Unfortunately, it turned out to be a fake breakout, as the hourly chart subsequently saw a huge red candle as the price fell from $8,800 to $8,330.
Of course, it’s hard to say whether there was a straight correlation between the inflows to BitMEX and the decrease in Bitcoin’s price. However, the timing was almost perfect, which should at least raise some eyebrows.
We have yet to see where Bitcoin will go from here, but at the very least, we can expect to see the volatility return.