Category Archives: BitMEX

Auto Added by WPeMatico

BitMEX Adopts SegWit as Exchange Embraces Bitcoin Scalability

  • Crypto derivatives exchange BitMEX has adopted SegWit, resulting in transaction fee savings for users

BitMEX has announced that they have enabled withdrawal support for Bech32 Segregated Witness (SegWit) addresses, although for deposits customers must still send to a regular multi-signature address. This upgrade reduces transaction fees for customers, since SegWit transactions use less data than regular transactions. BitMEX calculates that customers will save 37%.

However, the caveat is that the initial withdrawal from BitMEX will not result in any savings for customers, but when a customer spends their Bitcoins next time they will save the 37%, if they send the Bitcoins to a Bech32 address.

BitMEX is the largest Bitcoin derivatives exchange with billions of USD of trading volume every day. Therefore, it is possible that BitMEX adopting SegWit could lead to significantly less load on the Bitcoin blockchain, which would reduce transaction fees across the network, although this remains to be seen. Also, BitMEX adopting SegWit shows that the upgrade is becoming mainstream, and increases the chances that more exchanges and crypto companies will adopt it, which could lead to the Bitcoin blockchain being more scalable.

BitMEX is planning on implementing native SegWit for deposits at some point in the future, which will further reduce strain on the Bitcoin blockchain.

 

BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Image Courtesy: Pixabay

The post BitMEX Adopts SegWit as Exchange Embraces Bitcoin Scalability appeared first on BitcoinNews.com.

Bitcoin Flash Crash Cripples Coinbase as Exchanges Strain Under Pressure

Bitcoin Flash Crash Cripples Coinbase as Exchanges Strain Under Pressure

A widespread flash crash of Bitcoin price that took place yesterday — reported earlier in our BitcoinNews.com daily market sentiment analysis — had apparently had an effect on traders across several major crypto exchanges, including Coinbase, Binance, Bitfinex and Deribit.

The sudden dip in price led to these traders unable to access their accounts, although those on platforms like PrimeXBT were able to take advantage of the situation as others scrambled.

Having risen over 250% in just a few weeks, Bitcoin is touted by many analysts to be in a full swing of bullish and parabolic patterns, looking to emulate the last huge run in late 2017 that resulted in skyrocketing demand across the world, pushing prices to above global averages in markets where supply simply could not keep up

This recent crash was just a sample of things to come, with Coinbase unable to be accessed by many traders and even Binance, considered by many to be the largest outside of North America, caused some issues for people.

Irate traders took to social media, as usual, to vent their frustrations, when Bitcoin suddenly dipped around 2:00 pm EDT wiping out all the gains from the past 24 hours and then some. Traders began reporting that Coinbase, Binance, BitMEX and Bitfinex, among others were inaccessible.

Of course, many resorted to old theories of Tether and Bitcoin manipulation, with some taking a dig at the stablecoin linked to many a Bitcoin price scandal:

Relax guys, it’s just Bitfinex cashing out on Coinbase 🤣

— Gal Tesler (@galtesler) June 27, 2019

Whether or not there is “something fishy” going on with how all these platforms crashed for a while, there can be no doubt that FOMO season is here now. Just what it will do to Bitcoin’s price is anyone’s guess.

Anyone think theres something fishy about the fact that Coinbase, Bitrue, Bitfinex, etc. Go down during a huge parabolic move? We saw “overloading” and other excuses during Bitcoin Cash listings. And Binance going down for hacks, etc. Can’t help but feel like they’re all

— DM SPQR (@distributedmind) June 26, 2019

 

BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Image Courtesy: Pixabay

The post Bitcoin Flash Crash Cripples Coinbase as Exchanges Strain Under Pressure appeared first on BitcoinNews.com.

Leveraged Trading Blamed for Chinese Trader Suicide

Bitcoin Pierces, Remains Above ,000 Barrier as Rally Underway (1)

A Bitcoin trader in China has allegedly taken his own life following a disastrous trading loss on a highly leveraged trading position, as reported by Chinese blockchain outlet 8btc.

The man, named as Hui Yi, apparently lost BTC 2,000 (approximately USD 16.2 million at time of writing) of investor funds when he took up a short position at 100x leverage. When the market took a swing in the opposite direction, his position was immediately liquidated.

Hui, who was said to be the CEO and co-founder of BTE.TOP, a crypto market analysis portal, passed away on 5 June 2019. His death was only revealed by an ex-partner when rumors arose that the missing funds had been embezzled from clients, although it is widely speculated that the incident could also be a staged death to avoid repercussions.

The staggering loss would only have meant 20 Bitcoins without any margin trading — still a significant sum valued at USD 182,000, but nowhere close to the astronomical sum made possible by the 100x leverage.

Leveraged trading in Bitcoin is a means to amplify profits with a small capital, and was popularized by the BitMEX platform, which allows up to 100x leverage. It can multiply profits, but traders often underestimate how quickly positions can liquidate if the market moves in an undesirable direction, particularly with high leverage.

In the case of 100x, Bitcoin need only move 1% in the direction opposite of the trade for the position to liquidate — and Bitcoin has certainly done that and more every day for the past many years.

More and more exchanges and trading platforms are now offering leveraged or margin trading. Binance itself is in the midst of margin trading trials, as is Coinbase.

 

BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Image Courtesy: Pixabay

The post Leveraged Trading Blamed for Chinese Trader Suicide appeared first on BitcoinNews.com.

BitMEX Ventures Invests in Philippines Crypto Exchange Platform

BitMEX Ventures invests in Philippines based crypto exchange platform, PDAX

BitMEX Ventures, the corporate venture arm of the crypto trading platform BitMEX, has invested in a Philippines based cryptocurrency exchange platform, PDAX (Philippines Digital Asset Exchange), as reported on 3 June 2019.

This enables PDAX to extend its service of digital assets beyond cryptocurrencies. Tokens can be used to trade commodities, real estate equities and debt securities. This will help PDAX to launch an official platform from its BETA version. The goal of the platform is to provide an open-market for cryptocurrencies and other assets to secure a digital financial market for all kinds of investment products and securities.

The CEO of PDAX, Nichel Gaba, believes that this will have a twofold effect, that is, it will increase cryptocurrency adoption and awareness among people about digital assets. He said:

“Through digital assets and blockchain, we want to even the playing field to give every Filipino from all walks of life the ability to grow their hard-earned wealth. With the support of BitMEX and by leveraging blockchain technology, we hope to create a digital financial market that is accessible to everyone.”

Arthur Hayes, co-founder and CEO of BitMEX, believes that Filipino users contribute considerably to cryptocurrency trading. Taking this opportunity, investing in PDAX comes as a savior to accomplish the mission of providing users with a reasonable and seamless platform.

CEO of BitMEX acknowledges investment in crypto exchange, PDAX

He said:

We are confident in the transformative potential of cryptocurrency and PDAX’s ability to widen access to the Philippine market and provide the tools to learn more about financial markets.”

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post BitMEX Ventures Invests in Philippines Crypto Exchange Platform appeared first on BitcoinNews.com.

Bitcoin Bulls Wipe Out Losses on Another Strong Weekend

Bitcoin Bulls Wipe Out Losses on Another Strong Weekend

Bitcoin bulls have once again showed stubbornness over the weekend, wiping out almost all of the losses experienced over the past three days when Bitcoin suffered a flash crash from USD 8,300 to USD 6,300.

Although half of the over 20% price drop had recovered in 24 hours, Bitcoin has shown some signs of fatigue on Friday and Saturday, finding key support around USD 7,300. But the bulls were not to be denied, trumping traditional market timings and proving that Bitcoin buyers were as active as ever on Sunday throughout Asian and European trading hours.

The reaccumulation theory of Bitcoin certainly seems legitimate at this moment, with barely three days of prices below USD 8,000 before the bulls came back in force. Bitstamp’s ongoing investigation into the flash crash that happened on its own platform, in tandem with the USD 250 million sell order on BitMEX, seems to have brought some confidence back into the market for those on the sidelines as well.

After testing USD 8,000 several times, trading volumes broke new daily heights to pierce through the psychological barrier several times, although there is some difficulty in maintaining levels above that. Currently, Bitcoin is poised on a fine line, trading at USD 7,950 (Coindesk, 1:50pm UTC).

It now remains to be seen if North American markets will bring in more strength or cause further pullbacks before Asia wakes up again for Monday trading session.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Bitcoin Bulls Wipe Out Losses on Another Strong Weekend appeared first on BitcoinNews.com.

Bitstamp Investigates $250M BitMEX Liquidation

bitstamp, bitmex, investigation

After the shock slippage of Bitcoin price on Friday, as well as the observations posted on social media regarding large sell orders on Bitstamp, one of the world’s oldest Bitcoin exchange has launched an internal investigation on the large Bitcoin sell order.

As CoinTelegraph reported, the company announced the investigation on its Twitter account, seemingly to unearth the reasons behind the large sell order that significantly impacted its order book, causing a flash crash from around USD 7,800 to USD 6,250 in under half an hour — a loss of about 20%. Forklog also confirmed that about 5,000 bitcoins had been involved in the sell order, each sold at USD 6,200.

2/2: We closely examine every event that causes large-scale movement in our order book and have started an immediate case investigation.

— Bitstamp (@Bitstamp) May 17, 2019

The order is thought to have also triggered a sell-off of roughly USD 250 million on BitMEX, which was almost immediately liquidated during that 30 minutes, causing more immediate panic and triggering further selloffs. However, prices than stabilized at around USD 7,300 where it continues to trade today. Bitstamp insists that its platform had not malfunctioned and was operating as it should be at the time.

Some commentators within the crypto space suggested to Bitstamp an alternative scenario, believing that this could have been a mistake, as the selling price could have been USD 8,200 (which was the price at the time) instead of USD 6,200.

This means some idiot placed a sell order wayyyy below market price – they could have sold for at least 2 k more per coin meaning 10 million in lost equity for no reason. I’m guessing they meant to enter “8200” but entered “6200”

— jgmeyer247 on twitch (@DankSmoke4) May 17, 2019

 

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Bitstamp Investigates $250M BitMEX Liquidation appeared first on BitcoinNews.com.

Bitcoin’s Price Grazes $8,000 Next 2019 Milestone $10,000?

Bitcoin's Price Grazes ,000 Next 2019 Milestone ,000?

Bitcoin’s price recently pierced through USD 8,000 for the first time since July 2018, could the bulls be trailing their steps back to USD 10,000 and beyond? Especially given that the first time Bitcoin hit USD 10,000 in November 2017, it had continued in an uptrend rally from around USD 6,000 and reached the hallmark within a month, similar to recent milestones.

Source: CoinMarketCap

As Bitcoin continues in a sustained uptrend for the most part of 2019, the months of April and May happen to stand out so far with as much as 55% gain in just 30 days. Overall, year-to-date price of Bitcoin has seen an upsurge of about 113%. The cryptocurrency market has seen as much as the addition of over USD 20 billion. Bitcoin currently trades along the edge of USD 8,000 as at press time.

 

Source: CoinMarketCap

Perhaps both the fundamentals and the technicals are on the sides of the bull trend, helping the flagship cryptocurrency crawl out of a prolonged bear market plague. Some analysts have pinned the onset of the bull run on such events as the next Bitcoin halving, Fidelity Investment’s recent announcement of its over-the-counter Bitcoin trading service to institutions, and likely spillovers from the US-China trade wars – as Head of International Fixed Income at National Alliance Securities Andy Brenner pointed out:

“If you were in China and you wanted to diversify, it would seem logical that Bitcoin would be a short term alternative.”

Although many onlookers are weary of the parabolic development of the price actions, however, there could be no better news for cryptocurrency hodlers – perhaps a few – who held out their breath to weather the fiery winter storm.

A few industry players have explained their side of the bull trend, with different entities coming forward to claim their role in the price surge. One of such is CEO of TRON Justin Sun, who claimed his Tweet about helping the recently hacked Binance exchange with the sum of USD 40 million USDT had reversed the slight downtrend from USD 5,900 to USD 5,700 upon news of the hack.

At least BitMEX CEO and Co-Founder Arthur Hayes thinks the bulls are here to stay, suggesting Bitfinex’s USD 1 billion raise in 10 days is enough evidence. He also recently celebrated a new trading volume record of over USD 10 billion in 24 hours.

A $1bn IEO raised in less than one month. Bull market is here, buckle-up buckaroos!! https://t.co/4DaZ0fNtXe

— Arthur Hayes (@CryptoHayes) May 13, 2019

And he’s saying too bad to those who shorted: “When you mess with the bull you get the horns!!!”

Regardless of the claims, one plausible explanation to the recent price surge is that the market is seeing more buyers than sellers and hence with fewer sellers in the market and a steady increase in the demand for the asset, a price surge is a better incentive to sway sellers to let go of their Bitcoins. Would sellers cave-in or let the bulls ride a while longer?

 

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pexels

The post Bitcoin’s Price Grazes $8,000 Next 2019 Milestone $10,000? appeared first on BitcoinNews.com.

Coinbase 48x More Expensive to Use Than Stock Exchange

Coinbase 48x More Expensive to Trade than Traditional Stock Exchange

Self-proclaimed market analyst Alex Krüger has drawn the attention of the crypto community to a rather bizarre comparison between cryptocurrency exchanges and traditional stock markets, claiming “maker fee + taker fee” for crypto exchanges could be far more expensive at higher volume tier trading.

1/ Are crypto exchanges overcharging customers?

The average “Maker Fee + Taker Fee” in crypto SPOT exchanges (excluding Gemini) for the lowest volume tier (where most users fall into) stands at 0.33%. pic.twitter.com/tZOmGSsAzO

— Alex Krüger (@krugermacro) March 28, 2019

Krüger queried the fees levied on crypto traders as he explains in a series of Tweets how legacy financial institutions often have a flat rate cut per trade, while a typical fee cut by cryptocurrency exchanges only remains fair for lowest volume tier, and according to him, this is where most users fall into. He illustrated how brokers like Fidelity charge a flat rate of USD 4.95 flat per trade, putting the sum maker and taker fee at 0.02% for a USD 50,000 trade, and at 0.33% for a USD 2,900 trade, which can further be reduced should a trader consider brokers who charge per share rather than per trade.

According to the data he shared, Gemini exchange stands out with a sum maker and taker fee set at an exorbitant 2.00%, followed by Bittrex and Bitstamp with 0.5%, whereas Bitmex being a derivative market only charges 0.05%. Meanwhile, major US cryptocurrency exchange Coinbase Pro takes 0.40%.

In a comparison with foreign exchange markets, Krüger further cited how “an FX trader at Oanda would pay 0.008% for a round trip (in and out of a position)”, concluding that:

“Trading on Coinbase is 48x more expensive, while trading on Bitmex is 6x more expensive.”

Moreover, Krüger opined: “A cross-asset trading costs analysis should also account for spreads and relative volatility,” which invariably should impact fees levied, however, “crypto fees are generally high even after adjusting by relative volatility”.

In recent times, institutional investors have been targeted with offshoot market solutions to further attract this class of investors to the burgeoning digital asset industry. However, considering Krüger’s analyses, crypto exchanges second to huge volatility index of cryptocurrency markets may indeed be a huge deterrent for currency traders from the traditional market.

In February, Marketing consultancy Edelman published a report noting an unwavering millennials’ support for cryptocurrency exchanges, further corroborating eToro’s findings of a generational shift in trust suggesting a concrete trust in cryptocurrency market exchanges as well as a fading faith in the traditional stock market exchanges. However, while cryptocurrency trading appears to be more rewarding due to high volatility, the practical aspects of trading come with hidden fees that make it a trying first-experience for newcomers into the industry.

Blockchain technology may appear to solve certain constraints in legacy financial institutions and reduce the cost of transactions between clients, however, cryptocurrency exchanges may end up constituting a clog to the furtherance of the decentralized ecosystem as it reinvents the centralized systems obtainable in the traditional markets.

 

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Coinbase 48x More Expensive to Use Than Stock Exchange appeared first on BitcoinNews.com.

German Derivatives Exchange Supposedly Considering Crypto Futures Contracts

German Derivatives Exchange Eurex May Launch Crypto Futures Contracts

German-operated derivatives market Eurex is rumored to soon turn on the futures contract faucet, releasing its own set of cryptocurrency derivative contracts. If true, the first wave of contracts will include Bitcoin, Ethereum and Ripple (XRP) coin future contracts.

Citing people familiar with the development, media outlet The Block Crypto said that the exchange is meeting with market making experts with regards to the product.

Though no official comments have been made by the firm, the move, if true, comes as no surprise seeing how it had set its target on the crypto market since 2017. In 2018, a division was set up for crypto assets and distributed ledger technology. During that period, a Deutsche Börse spokesperson reportedly told German-based news media:

“We are thinking about futures, with which private investors and institutional investors can protect existing investments in bitcoin or set for falling prices of the cyber currency.”

More so, while Deutsche Börse acknowledged the fact that they have been in touch with the space for a while now, it had only been in the “ideation and exploration” phase but will need a “centrally steered approach” for a full-scale expression of the technology in their business.

The future of the crypto derivative market continues to take shape as new players are being introduced joining others in the queue for regulatory approval. Bakkt, Seed CX, and ErisX are among those seeking to introduce new settlement types into the US market – the physical Bitcoin settlements – adding variety to already established market place for crypto futures contract offered by pioneers CBOE and CME.

CBOE also wants to launch an Ethereum futures contract and is only waiting for the approval from the regulatory watchdog. So far, net sentiments from the idea of an Ethereum futures contract have been somewhat positive.

A couple of other cryptocurrency exchanges such as BitMex, CoinFloor, and Binance are already marking their space in the advanced cryptocurrency market to suit sophisticated investors. As the industry continues to mature, perhaps the market will take a complete semblance to that of the traditional financial market and may appeal to more mainstream traders and investors. Although regulation may be pivotal to this development, the CFTC has a workaround on how to allow the exchanges self-regulate in line with the stipulated financial laws, as an interim approach before a more constituted legal infrastructure is in place.

Moreover, the major contention lies in the security of services provided – the custody infrastructure and market monitoring instruments – constituting major impediments to the launch of other derivate market classes like the Bitcoin ETF, which has had many of its proposals declined or for many months under review by the Securities and Exchange Commission (SEC).

Nonetheless, it behooves any financial service operator willing to engage in this emerging market class to do a proper groundwork before launching any product into the market. As there are currently a few products, yet only a handful of institutional investors have dipped a foot in the water, although this number may be increasing steadily, still it only proves that a more comprehensive market infrastructure may be the only key to unlock the market for a full-scale adoption by institutions.

 

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

 

The post German Derivatives Exchange Supposedly Considering Crypto Futures Contracts appeared first on BitcoinNews.com.

BitMEX CEO: Bitcoin Is Society’s Best Hope for a Private Form of Electronic Money

BitMEX CEO_ Bitcoin Is Society’s Best Hope for a Private Form of Electronic Money

BitMEX CEO Arthur Hayes has spoken out in favor of Bitcoin, saying that the hallmark cryptocurrency is “society’s best hope for a private form of electronic money.”

The company is a cryptocurrency exchange and derivative trading platform. It is owned and operated by HDR Global Trading Limited, which is registered in Seychelles and has offices worldwide.

In a blog post published before the weekend, Haye’s latest thoughts on the industry entitled ‘Two sides of the coin: the bifurcated near-future of money’ suggested that the future of Bitcoin is ensured, commenting:

“Even in the face of the various centralized forces currently being marshaled: humanity’s bifurcated monetary future will be better than our monopoly monetary past, as some money becomes more convenient while other money becomes far more private.”

Hayes further suggested that until now, monetary systems had been dominated by monetary monopoly and a bifurcated system with Bitcoin representing the cryptocurrency industry would be the best hope for the future, despite the proliferation of alternatives such as Ether, Ripple, and others.

According to the BitMEX boss, another advantage that Bitcoin possesses when squared up against others is its security, having never been successfully hacked in its ten years of use. Painting a rather utopian picture of a background in which cryptocurrency can flourish, he went on to say that he felt Bitcoin could create an environment where individuals can work together towards a common end.

Hayes’ positive comments were made only weeks before he expressed his views about Bitcoin at the end of 2018, suggesting that it would continue its volatile bearish trend in 2019.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post BitMEX CEO: Bitcoin Is Society’s Best Hope for a Private Form of Electronic Money appeared first on BitcoinNews.com.