The Exchange Reportedly Have Sliced 25% Of Its Total BTC Possession Since 12th March

March was a turbulent month for the crypto sector, managing to push Bitcoin’s price with over 50% to trade at a quarterly low of $4,106.98. Many crypto enthusiasts and seasoned traders, however, blamed crypto exchange BitMEX for helping the market go down with long position liquidations.

Bitcoin started the month of March with momentum gained in February. The crypto massacre on 12th March however, led to the sector recording one of the lowest points in the market capitalization area for 2020. On March 13, the total market capitalization of the crypto sector was little over $43 billion, which is even lower than the lowest point in the crypto winter of 2018.

Crypto data gathering company CoinMetrics, however, found a strange correlation between the recent price drops and BitMEX liquidating over 25% of its total BTC holding since March 12. The mass liquidations on Bitmex led to freefall for the open positions on the exchange.

“As of March 29, BitMEX holds around 244,000 BTC, with a high of 315,000 BTC two weeks ago, on March 13.”, CoinMetrics announced on Twitter. Data from CoinMetrics also show that the mass liquidations occur frequently, but the volume of the liquidated positions was relatively small. The recent liquidation spree, however, recorded the most significant dip in the total BTC amount held by BitMEX.

CoinMetrics also reported that the BTC holdings decrease could be seen throughout exchanges, with the only gainers in total BTC holdings was recorded only by Bitfinex and Kraken.

The analysis company emphasized on the near future of the crypto sector and Bitcoin in particular. According to the halvening data, Bitcoin’s price peaked in the months after a halvening. Interestingly, as the halvening procedures carry on, the inflation rate of Bitcoin decreases.

Another crypto analysis company, Glasnode, conducted research, stating that amid the global financial crisis, more and more crypto holders tend to deposit their stash into wallets, rather than leaving it in the exchange. The report also shows the massive outflow of BTC from exchanges to wallets began around March 18 and is increasing ever since.

“The BTC balances in exchanges are at their lowest levels for the past eight months,” Glassnode stated in Twitter.

Meanwhile, the role of stablecoins is increasing, as crypto holders tend to exchange their assets into stablecoins. Tether, for example, recorded an all-time high balance in the most prominent crypto exchanges, mostly fueled by fears of further price drops.

Bitcoin Cryptocurrency Crypto Market Exchanges News bitcoins cryptocurrencies exchange price bitcoin news bitcoin news today Exchanges Prices BitMEX

Cookie Policy uses cookies to enhance your experience. By continuing without changing your settings, you agree to this use. To provide the best blockchain and crypto media on the web for free, we also request your permission for our partners and us to use cookies to personalize ads. To allow this, please click "OK". Need more info? Take a look at our Cookie Policy.

OK Cookie Policy