On March 23, 2020, reports indicate that the derivatives platform and crypto exchange BitMEX is taking a huge hit amidst fear in the global markets of possible worldwide economic recession.
Affecting the price of crypto and consequently crashing the crypto market, the coronavirus fear has also sparked massive sell-off of derivatives on BitMEX, with major ones recording signs of decline.
At the time of press the Skew Chart data indicates that while BitMEX has held the derivatives giant in position for a while, it has now fallen behind Binance at the third position in the last 24 hours of Bitcoin futures trading volume. According to data recorded from Skew, the sell-off trend is expected to go on for a longer time.
BitMEX Is Getting Hit Harder Than Other Bitcoin Futures Trading Exchanges
In the same week during which the crypto market crashed due to plunging oil prices, BitMEX recorded a drop from $1.2 billion in trading volume to $745 million in a single day.
While all markets have suffered downturns due to the Coronavirus outbreak and that is now going global, the exchange has remained down and recorded the least turn back prices since its plunge earlier in the month.
BitMEX suffered a downturn of 55% on March 12 and recorded an overall 64% overall for March. Compared to OKEx’s 27% and 43% and Binance’s 47% and 61%, BitMEX is evidently having a rougher time than its main competitors in the same market conditions.
Did Recent Mass Liquidation On the Exchange Contribute To Significant Downturn?
BitMEX woes might be rooted deeper in a recent controversial event in which the platform denied being involved in a mass liquidation that caused BTC prices to fall to $3700. BitMEX fell under fire for going offline for around thirty minutes during the price crash and denied allegations of being involved in the sabotage:
“Between 02:16 and 02:40 UTC March 13 2020, we became aware of a hardware issue with our cloud service provider causing BitMEX requests to be delayed.”
The mass liquidation was the first of its magnitude on the platform for more than one year.
A few investors rallied up behind BitMEX after the crypto community cried foul play, accusing BitMEX of a dirty move. When the platform finally responded, their spokesman claimed vigilance on restoring their systems as fast as possible and added that the allegations were false:
“That is absolutely not true. We have and will always operate a fair and efficient platform. BitMEX is fully prepared for such liquidation events through our insurance fund, which is the largest in the industry by order of magnitude and remains healthy.”