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BitMEX, a prominent cryptocurrency exchange, is currently delving into an unusual incident that unfolded on its Bitcoin spot market.
Reports have surfaced regarding a user engaging in significant sell-offs, drawing attention from market observers. Allegedly, this individual offloaded more than 400 BTC on the BitMEX platform, causing a drastic 87% decline in the flagship digital asset’s value. Bitcoin’s price plummeted to as low as $8900 on the exchange before stabilizing.
In response to inquiries, BitMEX has clarified that the incident did not have any impact on its derivative markets or index price. Reassuring its users, the exchange stated that its trading platform is operating normally, with all funds remaining secure.
Meanwhile, Bitcoin’s price faced additional challenges, experiencing a notable drop to around $63,000 during Asian trading hours. This decline, exceeding 6%, contributed to a broader market downturn that saw over $600 million in losses for crypto futures traders.
In addition to Bitcoin, other major cryptocurrencies, including Ethereum, Solana, BNB, Cardano, and Avalanche, also witnessed declines exceeding 5%.
READ MORE: Trader Turns $72,000 into $30 Million in Memecoin Craze
Analysts are interpreting this downturn as typical market behavior preceding the forthcoming halving event. Michaël van de Poppe, a crypto analyst, highlighted a pattern reminiscent of previous halvings, suggesting that Bitcoin’s price tends to peak approximately five weeks before the event, followed by a consolidation phase and potential altcoin activity.
Monitoring the current status of #Bitcoin's price action vs. the previous halvings:
▫️ – Still a copy-paste.
Peaking 4-5 weeks before the halving, after which a period of consolidation happens -> Altcoins to wake up.
In 2016, Bitcoin peaked 4 weeks prior to the halving. pic.twitter.com/QuQrZHT4el
— Michaël van de Poppe (@CryptoMichNL) March 19, 2024
The much-anticipated BTC halving event is scheduled for April 20, with fewer than 5,000 blocks remaining until the milestone.
In the wake of the market downturn, a substantial number of crypto traders suffered significant losses, tallying an impressive $623 million within a 24-hour period.
According to recent data, long traders bore the brunt of the losses, accounting for $516 million, while short traders faced liquidations totaling $107 million.