It appears that traders are beginning to regain faith in the most popular Bitcoin margin trading exchange, BitMEX, following the latter’s CFTC probe. So far in August, the exchange has seen more than $60M worth of positive inflows.
BitMEX Showing Signs Of Recovery
The popular Bitcoin margin trading exchange, BitMEX, is showing strong signs of recovery following the CFTC investigation which began in July.
Thus far in August, the cryptocurrency exchange has seen upwards of $60 million of positive inflows, recording its first month in the green since March, according to data from popular data resource TokenAnalyst. In August, the exchange experienced only one day on which its outflows were larger than its inflows. On August 6, BitMEX received roughly $2M less than it lost.
However, BitMEX has clearly had a rough time over the past four months, as all of them were fairly negative for the exchange, especially in July, when the exchange saw outflows of around $524 million. To put things in perspective, BitMEX had previously never had a month during which it lost more than $100M. What is more, the exchange was 100% positive in 2018, bringing in more than $1.3B worth of inflows.
Bitmex had $524M net outflows in July. It had never had more than $100M in a single month.
2018 brought in $1.3B, and there was not a single month where outflows were greater than inflows. pic.twitter.com/yfQSMfCbvy
— Ceteris Paribus (@ceterispar1bus) August 4, 2019
The Toll of the CFTC’s Investigation
It’s clear that the investigation that the CFTC launched against BitMEX took its toll. As we mentioned above, the exchange lost upwards of $524M in July alone as a result of the probe.
The CFTC alleged that BitMEX had allowed US-based traders to operate on its platform, despite the fact that this is against existing regulations, as well as the exchange’s own terms of service.
We have yet to see how this will end, but it’s not the first time BitMEX has had to address issues of the kind. Back in November 2018, Hong Kong-based exchange began shutting down accounts which originated in the US.
It’s also worth noting that this investigation followed shortly after BitMEX’s CEO, Arthur Hayes, had a very heated and widely broadcast debate with popular no-coiner Nouriel ‘Dr. Doom’ Roubini.
In any case, it appears that things are picking up for BitMEX, signaling renewed confidence in the exchange.