Blockchain research and intelligence service TokenAnalyst.io has some more bullish news for Bitcoin heading into February. BitMEX, the world’s largest Bitcoin derivatives market, has seen it fortunes turn on a dime from December to January. In December, the massive Bitcoin futures platform saw its cold wallet balance decline by approximately 1,000 BTC ($9.3 million USD on 1/30/20). But over the last month, BitMEX experienced inflows in excess of 15,000 BTC ($140 million+ USD on 1/30/20).
Interest is picking back up on @BitMEXdotcom.
After a soft December which saw their cold wallet balance decline by ~1K $BTC, January has seen consistent inflows totalling >15K.
Cold Wallet Balance:
Nov 30 – 256K
Dec 31 – 255K (-1K)
Jan 30 – 270K (+15K) pic.twitter.com/s8uVhyCYej— Ceteris Paribus IS RIGHT (@ceterispar1bus) January 30, 2020
It looks like Bitcoin Spring is coming early this year. There’s no telling whether global warming has anything to do with it, but the crypto market is seriously warming up right now. And don’t call them “tulips,” but Bitcoin products are blossoming all over the Internet. Bitcoin prices boomed by 40% in January.
The three big factors analysts point to in Bitcoin’s massive rally are: 1) The Bitcoin Halving event in May 2020; 2) a run for safe-haven assets amid coronavirus fears; 3) and strong fundamentals in the cryptocurrency industry getting stronger every day.
Naturally, this leaves a mark on cryptocurrency exchanges such as BitMEX. Currently being the largest Bitcoin margin trading exchange, the exchange has recorded a daily traded volume of almost $4 billion.
Not only has the size of its cold wallet increased, but BitMEX also saw a 5.84% increase in its positive inflows according to TokenAnalyst. In other words, $20.1 million worth of BTC was deposited in BitMEX, while only $11 million was withdrawn today.
Halvings historically boost the Bitcoin price. But add to that the increasing number of institutional investors and venture capitalists flowing resources into the crypto industry every year. Season it with the risk of global economic slowdowns if the coronavirus gets worse. There’s little wonder why traders are pouring funds into BitMEX to make leveraged bets on rising Bitcoin price in 2020.
Disclaimer: This article is the opinion of the author, and does not represent professional financial or investing advice.