BitMEX holdings of Bitcoin dropped by 25% after the liquidation of the active stock

BitMEX reached 1 trillion USD in Bitcoin trading volume

The number of Bitcoin (BTC) held by cryptocurrency derivatives exchange BitMEX has dropped by 25% in the past few weeks.

In the bloodbath of the cryptocurrency market on March 12, Bitcoin dropped by 50% from its price above $ 10,400 in 24 hours. Mass liquidation on BitMEX is thought to play a major role in the cryptocurrency crash. Since then, the amount of Bitcoin held by the platform has dropped significantly.

According to data provided by CoinMetrics, on March 13, BitMEX hold about 315,000 BTC. This number dropped to 244,000 BTC on March 29.

The reasons behind BitMEX's decline in holding are completely unknown. This could simply be that investors withdraw their money to cold wallets in the face of an uncertain market or BitMEX likely decided to reduce exposure to BTC. However, the cash outflow may also indicate a lack of trust in BitMEX itself - following the exhaustion of BTC futures liquidity.

Others argue that this is the result of the decision to withdraw from the space of big waiters and institutional investors amid the current financial crisis.

Investors move Bitcoin to private wallets or liquidate

BitMEX is not the only exchange to witness a decline in its Bitcoin holding. According to data from Glassnode, withdrawals have increased since March 18, bringing the amount of BTC on exchanges to a low level seen in the past 8 months.

Glassnodes says traders may simply choose to control their own assets or decide to stop trading and hodl in the long run, or also because they are concerned about the liquidity of exchanges. Cryptocurrency in the context of market downturn.

Switch to stablecoin instead of BTC?

While Bitcoin is relatively well controlled under various circumstances, the amount of Bitcoin withdrawn from exchanges may be due to users expecting further price drops. One explanation for this argument is the shift in capital into stablecoins like Tether (USDT) - which recently reached the highest of all time on the exchanges.

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According to CoinTelegraph
Translated by ToiYeuBitcoin

About My name is Nguyen Manh Cuong. I was born in a poor village in Ba Vi district, HA NOI province - windy and sunny land. Currently. Mr Cuong.
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