Crypto Exchanges Bitfinex And BitMEX See 50% Decline In Bitcoin Holding
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Crypto Exchanges Bitfinex And BitMEX See 50% Decline In Bitcoin Holding

May 13, 2020      Jyoti Singh

Since the mid-March crash, the Bitcoin holdings on Bifinex and BitMEX has declined by a total of around 200,000 BTC. The reason for this downturn is Bitcoin outflow from the platform.

Bitcoin Outflow Follows Trend

On the one hand, the crypto exchanges have been experiencing a tumble in the balance of Bitcoin, while on the other hand, some of the platforms started accumulating Tether (USDT).

The co-founder of Casca, Jameson Lopp, on May 12, 2020, in his tweet mentioned that currently, BitMEX and Bitfenex has been experiencing a fall in the balance of Bitcoin. Even the Coin Metrics’ State of the Network reported that from the past two months the Bitcoin has been flowing out of both the exchanges.

Since March 13, the Bitcoin holdings on BitMEX and Bitfinex came down by 100,000 BTC each.

According to a report, “Bitfinex now holds 93.8K BTC, down from 193.9k on March 13th. BitMEX’s BTC supply is now down to 216.0K BTC, down from a peak of 315.7K on March 13th”.

In April 2020, an observation was being regarding the decline of BTC holdings explains that the outflow follows a trend.

Crypto Exchanges Exposure Reduced To BTC

At that time only, the Bitcoin balance held by BitMEX collapsed 25 percent and currently, it is settled at 32 percent. While comparing to BitMEX, Bitfinex’s Bitcoin balance is going down more rapidly, and recently, it settles at 52 percent.

An assumption is being made that this outflow of Bitcoin from the exchanges is linked with the market crash which happened on March 12, 2020, and the price of Bitcoin reached to $3,800. While the market was dealing with Bitcoin crash, many of the crypto derivatives exchanges noticed an outflow of forced liquidation which mostly affected the BitMEX traders as they had suffered the most loss.

According to the reports, the trading of Bitcoin for USDT on exchanges reduced their exposure to BTC and that is the reason BTC started streaming out from the platform.

On the other hand, the Tether balance on exchanges is growing and currently have reached at its all-time high (ATH) position, a report by crypto analytics provider Glassnode.

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#Bifinex #Bitcoin holdings #Bitmex #Casca #Coin Metrics’ State of the Network #Jameson Lopp #Tether USDT
Jyoti Singh
Jyoti Singh

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.