With $73 million in bitcoin outflows, is Bitmex a bull market "time bomb"?

According to the data, Bitmex, a cryptocurrency exchange, saw a $73 million bitcoin outflow within 24 hours. It has been reported recently that the CFTC is investigating the transaction's alleged service to US traders.


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Panic leave or open as usual?

The Token Analyst in London first reported the outflow of funds on Twitter. Most exchanges (Binance, Bitstamp, Bittrex, and Poloniex) have similar inflows and outflows. However, Bitmex is eye-catching because of its unusuality, as the exchange has only $12 million in inflows and $85 million outflows.


Some people speculate that this is due to panic leaving. Yesterday, it was reported that the US Commodity Futures Trading Commission (CFTC) is investigating the exchange. However, many people retort that this capital outflow may not be a big deal considering the bitcoin trading volume on the Bitmex platform.


So what is the potential panic?

The CFTC's investigation report revolves around whether Bitmex provides services to US traders. Since cryptocurrencies are ruling as commodities in the United States, any platform that allows US citizens to trade must be registered with the CFTC.

The platform's terms of service did include the United States as a restricted jurisdiction, and customers reported that their accounts were closed because they suspected they were US customers.

However, most cryptocurrency traders do not encounter any problems setting up a VPN to bypass geo-blocking or other such restrictions.

In this case, is there a problem with the exchange, or is there a problem with the trader?

The recent outflow of funds from the Bitmex exchange may represent the withdrawal of funds from the exchange by US traders, thus maintaining a distance from the CFTC. However, this is by no means certain.

In addition, although some believe that this amount of bitcoin will enter the spot market, there is no indication that this is the case. These liquidity is likely to flow into other exchanges and even hardware wallets.

Even if it is sold, such an amount should not cause the price of BTC to fall sharply.

Bitmex has been troublesome recently. Just before, the long-term bearer of cryptocurrency, Dr. Nouriel Roubini issued a document saying that BitMEX and all similar cryptographic trading platforms allow systematic illegal activities. He said that BitMEX insiders shared with him that the exchange took a blind eye to the money laundering of terrorists and criminals from Russia, Iran and elsewhere, and profited from these transactions. However, BitMEX responded that BitMEX refused to accept any allegations of crime, manipulation or unfair treatment of its clients.