18,000 BTC Transfer To BitMEX Derivative Exchange Wallet, Bitcoin Prices Jump
BitMEX, short for Bitcoin Mercantile Exchange, provides bitcoin trading products that stimulate over 100 times leverage, which as per their objective, permits users to buy as many as 100 BTC contracts with only one BTC to back it up. Besides the factor of leverage, BitMEX contracts have no expiry, which is preferred among many.
This being said, it has been recently revealed that BitMEX allegedly received 18,000 bitcoins, which are worth approximately USD$112,651,920 today.
Many perceive this to being great news, as large transfers and selling of bitcoins have been capable of impacting its overall trading volume and prices. As per Finance Magnates reporting, the 18,000 was received from 16 different wallets on Tuesday, August 14, 2018. Another set of about 464 BTC were also transferred, but the account to which they were transferred remains indistinguishable.
Prior to this transfer, BTC was sitting at USD$6,059, however, it reached an all-time high of about USD$6,588 within the past two days. Ultimately, this reflects a nine percent increase. This clearly shows that there is a correlation between buying and selling of cryptocurrencies and market trends.
Other examples that show this relationship include, former bitcoin exchange, Mt. Gox’s bankruptcy trustee, whom some refer to as a “Whale” or Nobuaki Kobayashi sold a large portion of his bitcoin holdings, driving the prices and market down significantly.
Of BitMEX’s products, the XBTUSD is mostly preferred as it is a Perpetual Contract. In particular, users who choose this respective type of contract need to be aware of its fair price marking, unrealized PNL, liquidation prices as well as longs versus shorts depending on positive versus negative rates.
Overall, it is not wrong to assume that large transfer of crypto can possibly influence how the crypto market travels. Another assumption that many leaders and investors of all levels stand by is that of emotions. In other words, positive versus negative news could impact the buying and selling patterns, and eventually market trends.
What other factors do you hypothesize play a role in market trends? Share below.