Bitfinex Still The 5th Largest Bitcoin Address Even After Seeing A Withdrawn Of 17k BTC
On April 26th, the New York General office alleged that crypto exchange Bitfinex has lost $850 million and in response used funds from the affiliated stablecoin operator Tether (USDT) to cover the shortfall.
NYAG Letitia James had announced that she had obtained a court order against iFinex Inc. that operates both Bitfinex and Tether, ordering them to cease defrauding New York residents and violating New York law.
This news led Bitcoin price to drop down to around $5,100 level and in tandem altcoins dropped even harder.
This led to massive amounts of USDT being sent from wallets to exchanges. It even made people shift from the popular and controversial stablecoin to others like USDC and Paxos.
Moreover, since the beginning of April, the circulating supply of USDT has grown from about 2 billion coins to more than 2.8 billion coins.
BTC/USD Shorts Jump To 62%
However, Tether isn’t the only one affected, Bitfinex also saw a lot of movement as a result of the breakout of this news. As we reported, three is a spread of over $300 between the Bitcoin price on Bitfinex and other exchanges,
Bitcoin supporter and crypto OG, WhalePanda also pointed out how this has created “interesting” market conditions.
“Unsurprisingly Bitcoin dumped hard initially on Bitfinex, followed by a decent recovery. Meanwhile, on other exchanges, the recovery wasn't nearly as good. Currently, there's a ~$300 (6%) premium.”
According to Token Analyst, the day this happened, the outflow in the number of transactions took a significant hike going from 450 a day back to over 1400. However, since then it has come down to 195. Meanwhile, inflows went from 2,098 on April 26th to 834 today.
The Bitcoin cold storage address of Bitfinex also took a drop of 17k BTC that day but as WhalePanda points out, “It still has 102k BTC and is still the 5th largest Bitcoin address.” The situation is the same for other big cryptos like Ethereum.
We recently reported how the BTC/USD longs have declined while BTC/USD shorts are on an ascent. Though the percentage of short vs long had already flipped a few days before this debacle, with Bitcoin price taking a hit, a lot of shorts have been added since then, jumping to 62 percent.
“With a large amount of coins being withdrawn from Bitfinex and more shorts being opened the funding rates on Bitfinex are currently near a 36-40% pa return (or 0.1% daily return) for Bitcoin. Making it quite expensive to actually short under these market conditions.”
Currently, Bitcoin price is trading around $5,200 at $5,239 with 24-hours loss of 1.30 percent, as per Coinmarketcap. Though just like shorts, a correction has already been expected, what’s remain to be seen is if Bitcoin will take a drop to about $4k level as some experts have been predicting or will make an upward move.