BitMEX Research: A new uncomfortable truth about exchanges is revealed when Bitcoin price saw a “flippening”
Bitcoin flipped during its price drop to $ 3,700 last month – something that could reveal a new uncomfortable truth about the exchange. In his March Exchange Review CryptoCompare, the monitoring resource released this week highlighted liquidity as a critical metric that has changed during the extreme volatility of the past month.
CryptoCompare: Bitfinex has reached 40% of the exchange volume
On March 12, when bitcoin prices collapsed within a few hours, it was particularly a platform that offered traders more volume and, therefore, more liquidity.
The report stated:
“Although Binance and OKEx were broadly the largest volume traders in all markets, it was exactly the time of the BTC crash (around 10:30 a.m. GMT) that started on the 12th, Bitfinex that the majority of the top Tier companies accounted for exchange trading volume (across BTC/USD and BTC/USDT markets). This was followed by Coinbase, OKEx, and Bitstamp who also maintained high volumes during this time.”
Bitcoin exchange volume for March 12, 2020 | Source: CryptoCompare
According to CryptoCompare, Bitfinex offered the largest volume in the first hour of the steep crash. Among the first-class exchanges without Coinbase, OKEx, and Bitstamp, between 10:40 am and 11 am, it represented 40% of volume on average among these exchanges.
During the short period, Bitfinex traded up to $ 11.8 million per minute.
Bitcoin whale praises platform
Reacting to the findings, online commentators were quick to point out that more mainstream exchanges with ubiquitous branding were unable to compete with the more modest Bitfinex in terms of liquidity.
Among them was the Twitter user J0e007, a notorious high volume Bitcoin trader who regularly tops the list of Bitfinex accounts with the highest earnings.
When shit hits the fan, you know where you can get real liquidity. It’s definitely not on those faketown exchanges with such great marketing headed by popular figureheads. pic.twitter.com/S55EKSvyTL
— J⁷ ≣ ? (@J0E007) April 4, 2020
CryptoCompare also found that on March 13, $ 75.9 billion in one day was the highest volume in history in cryptocurrency markets. The derivatives giant BitMEX continues to criticize its possible role in the crash, although executives deny that the platform’s technical problems are to blame.
On Saturday, a colleague with high volume Hsaka warned of unpredictable volatility in the BitMEX futures markets after an increase of $ 450 during the trade, which only lasted a minute.
Casual ~$450 wick on mex $BTC futs. pic.twitter.com/FzFKIKMiuf
— Hsaka (@HsakaTrades) April 4, 2020
Read more:
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- Bitcoin Price Uptick Has Led To A Spike Of Bitcoin Futures Trading On Both The CME And Bakkt