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BitMEX Sees $130 Million BTC Longs Liquidated As Price Drop Under $10,500

BitMEX Hit with a Lawsuit for Market Manipulation and Fraud

With the massive price dip that Bitcoin (BTC) has seen on Thursday, a cascade of forced liquidations on derivative exchanges, such as Bitfinex and BitMEX. The US stock market also received a beating, seeing the worst performance since June of this year.

Losing $40 Billion In Value In A Day

Datamish, a crypto derivatives analytics platform, has shown that the BitMEX exchange has seen $131 million in Bitcoin Longs liquidated, coming as a result of the BTC price dropping below the $10,500 mark.

Bitcoin price managed to shed $1,500 in value in just 48 hours. As is the norm, this subsequently leads to other altcoins, such as Ethereum, to see a dramatic nosedive, as well. The market crash that occurred on Thursday was to such a degree, that the total market capitalization for the crypto industry managed to lose more than $40 billion in value.

Liquidations Everywhere

Just as the long traders within BitMEX are suffering, the traders with long positions within the Bitfinex exchange had also seen dramatic amounts of liquidations due to this price dive. The veteran crypto exchange saw approximately $1.47 million in Bitcoin longs being liquidated within its platform.

Forced liquidations stand as a common feature in both longs and shorts within the crypto market, as entering overleveraged bets is common practice for traders. Due to this, massive price movements can catch these traders completely off guard, which sees a cascade of forced liquidations due to these positions going underwater.

Before the massive price drop occurring on Thursday, Bitcoin tried to keep its head above the $12,000 mark. However, every effort to push the price above this was only met with a quick, decisive reversal.

Massive Job Fears Leading Bear Market

The US is seeing rising levels of fear when it comes to jobs, which prompted several things to occur. The stock market saw massive selloffs, with the Dow and S&P going down by 800 points and 3.5%, respectively. It seems that the panic in the equity market mirrors that of the crypto space, as the Bitcoin price dropped on Thursday as well.

It should be noted, however, that Bitcoin may very well see a swift recovery, should one look at gold. These past few months have seen Bitcoin be closely associated with gold. As such, the world’s leading cryptocurrency could see an upwards bounce quite soon.

It should be noted, however, that Bitcoin is a strange beast, performing like equity, or gold, or any other asset based on the circumstances at hand. It’s not entirely clear how the crypto market will recover and how long it will take.

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      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.