Recent reports have emerged regarding an unusual activity on BitMEX involving a user selling large orders on the Bitcoin spot market. This rogue seller unloaded more than 400 BTC on the exchange, causing the digital asset to crash by 87% to as low as $8900 before eventually correcting to its actual price. BitMEX has stated that this event did not impact its derivative markets or index price, ensuring users that the trading platform is operating as normal and all funds are safe.
In addition to the incident on BitMEX, Bitcoin faced further challenges as its price dropped to around $63,000 in Asian trading hours after a crash of more than 6%. This decline is part of a broader market downturn that saw over $600 million wiped out from crypto futures traders. Not only Bitcoin, but other major cryptocurrencies such as Ethereum, Solana, BNB, Cardano, and Avalanche also experienced significant losses of over 5%.
Analysts have noted that this dip in the market could be typical behavior preceding an upcoming halving event. Crypto analyst Michaël van de Poppe pointed out a pattern mirroring previous halvings, indicating that Bitcoin price tends to peak about five weeks before the halving, followed by a consolidation period and potential altcoin activity. The eagerly awaited BTC halving event is scheduled to take place on April 20, with fewer than 5,000 blocks remaining until the big day.
The recent market downturn had significant consequences, with 240,000 crypto traders experiencing substantial losses totaling $623 million in just 24 hours. According to Coinglass data, long traders suffered the most significant losses, accounting for $516 million, while short traders were liquidated for a more modest $107 million. Bitcoin traders saw liquidations exceeding $150 million, followed by Ethereum traders with $106 million in losses. The largest liquidation order recorded was a $12 million long position on Bitcoin executed via the OKX crypto exchange.
The recent events in the Bitcoin market have raised concerns and highlighted the volatility and risks associated with cryptocurrency trading. Traders and investors are advised to proceed with caution and closely monitor market developments to make informed decisions. The upcoming halving event and the broader market trends will undoubtedly impact the future price movements of Bitcoin and other major cryptocurrencies.