Ethfinex And Bitfinex Exchange Upgrades Could Increase Crypto Asset Volatility In The Market
Ethfinex And Bitfinex Upgrade Could Increase Volatility In The Market
Volatility in the crypto market could increase on December 19. The Bitfinex and Ethfinex teams informed their users that there will be a network upgrade that could take between 3 to 7 hours. The intention is to enhance their speed, security and performance by migrating data to new bare-metal servers.
Back in August 2018, BitMEX went offline for just a few hours and volatility in the market increased substantially. Bitcoin moved from $6,400 to $6,800 in just a few hours since there were no BTC short positions to move Bitcoin’s price down.
Bitfinex is currently the 13th largest crypto exchange with a trading volume of around $200 million. Ethfinex has a trading volume of $1,9 million. These were the values registered by CoinMarketCap in the last 24 hours for both of these platforms.
At the moment, in the last 24 hours, $16 billion in assets were moved in the last 24 hours in the whole crypto space. This is equal to 1.25% of the total crypto trading volume.
This shows that market volatility could be limited during these hours. Although we could see increased volatility in the space, these exchanges do not account for a large amount of the total trading volume in the crypto market.
1% of the total BTC trading volume in a few hours could have a short-time effect in the price of the most popular virtual currency, and subsequently in other digital assets in the market. This could be very positive for traders that want to trade during some hours and earn an extra profit that specific day.
To certainly know what will happen that day we just need to wait for these three to seven hours.