BitMex Data Glitch Makes Bitcoin Priced At $8,000 USD Temporarily, Why?
BitMex, one of the most popular cryptocurrencies in the world, has experienced a glitch that made the Bitcoin price rise from $6,500 to $8,000 USD during a couple of minutes. No trades were executed at the $8,000 USD mark, though, so it may have been a visual bug that did not affect the actual data of the company.
Many investors have criticized the exchange, though, affirming that it is abnormal behavior like this that decreases the probability of the Bitcoin ETF being approved in the future.
Bad Look For The Industry
According to Alex Kruger, a trading analyst, the Bitcoin price surge was possibly a glitch caused by the engine and it was mostly visual. According to him, this can sometimes happen on poor data feeds like Ameritrade’s stocks feed after hours.
However, another popular cryptocurrency trader called Don Alt has affirmed that this bug in the BitMex system demonstrated there is such a high need for other exchange platforms, as the ones that dominate the market right now are prone to demonstrate instability and volatility in their prices.
As visual glitches are not the same as actual trades, no one was actually harmed by the bug shown by the BitMex trading platform today. However, the exchange has more than 40% of the market share in the BTC/USD trading pair, so glitches like this are very worrisome for the traders all around the world. Because the expectations of the investors are very high, they also demand a stable service from BitMex.
Recently, the CEO of BitMex, Arthur Hayes, has revealed that the company is currently the most liquid Ethereum market, in front of Bitfinex and even Coinbase Pro and Kraken.
When you consider the influence of the company on Bitcoin and Ethereum, it is easy to see why so many people were angry when the problem happened on the exchange.
SEC Doesn’t Want To See ETFs Based On Exchange Price
In the last two months, the U. S. Securities and Exchange Commission (SEC) has rejected a total of 0 exchange-traded funds (ETFs) based on Bitcoin. The main reason why the ETFs were not accepted is that they based their prices on the exchanges and futures markets.
Bakkt, a digital exchange created by Microsoft, Starbucks and the New York Stock Exchange, has recently stated that one of the major challenges of trading Bitcoin is finding actual trusted price information and that this will be important if BTC is to reach a wider audience in the financial market.
As long as there are still security issues in the cryptocurrency sector, it is hard for the SEC to actually approve the ETFs based on the Bitcoin price established by the exchanges, so they will have to make a real effort if they want the ETF to happen.