Crypto News- BitMEX, the crypto exchange and derivatives trading platform, witnessed a sudden plunge in Bitcoin below $9,000 on its USDT spot market late Monday. However, the derivatives market remained unscathed, according to the firm’s official statement.
The exchange is currently delving into what it terms as “unusual activity,” particularly large sell orders on its BTC-USDT pair. “This does not affect any of our derivative markets, nor the index price for our popular XBT derivatives contracts,” BitMEX assured its users.
Bitcoin Plunges Below 9,000 Dollars on BitMEX’s USDT Spot Market: Derivatives Market Unfazed
A member of the crypto community known as “syq” shed light on the incident, noting a massive dump of over 400 BTC within a span of two hours, resulting in significant slippage. “They must’ve lost $4m+ at least,” they speculated. BitMEX clarified that withdrawals were disabled only for a few accounts relevant to their ongoing investigation.
Amid reports of the flash crash, BitMEX underscored its commitment to investigating “potential misconduct” by traders in its BTC-USDT spot market. Despite the turbulence, the derivatives markets remained unaffected, with no liquidations triggered and mark prices remaining stable.
Explaining the cause behind the price drop, BitMEX emphasized its adherence to fair and equal markets, refraining from employing internal market makers. The sheer magnitude and frequency of BTC sell orders overwhelmed independent market makers and other traders, leading to the crash.
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