Temporal: Enterprise Solution for Distributed Data

BitMEX Recorded Largest 4HR Candle Ever, $2 Billion Traded in 4 Hours

Leading Bitcoin exchange BitMEX has recorded the largest volume candle in the history of cryptocurrency, with over $2 billion traded within four hours on July 17, 2018.

The event was first marked in a tweet by Broccolex, a self-declared blockchain analyst:

Occurring between 16:00 and 20:00 GMT, BitMEX’s mammoth spike accounted for more than 80% of all of the day’s Bitcoin trading — with $5.84 billion BTC traded globally. The furious bull run managed to push Bitcoin’s price up more than 8% in price as the leading cryptocurrency broke through the $7000-mark.

Some would question the legitimacy of this volume, however. Responding to Broccolex’s tweet, one user commented:

False Volume?

As a holy grail of sorts, trade volume serves as a quantifiable measure of an exchange’s usership and monetary success.

When it comes to fee-charging exchanges, the incentive to manipulate volumes is evident. Huobi’s 0.2% trading fee is double that of Binance’s, yet its daily revenue stands nearly 30% lower than Malta-based Binance — the world’s largest (fee-charging) exchange by daily volume.

And manipulate, they do, according to trader and investor Sylvain Ribes. In a study published March 2018, Ribes asserted that at the time more than $3 billion of cryptocurrency volume was manipulated — including that of OKEx — currently the second-largest (fee-charging) exchange by volume.

Accusing a fee-less market such as BitMEX of foul play is a little more complex, however. BitMEX — which sees more than double the daily trade volume of Binance — is by technicality the world’s largest cryptocurrency market, yet remarkably, it does not charge fees.

In theory, fee-less exchanges may be particularly vulnerable to price manipulation. As there is no cost to place an order — whether organic or inorganic — trading bots and individuals may interfere with an asset’s slippage, thereby skewing price in their favor.

Where Ribes’ report implicates OKEx, Huobi, HitBTC, and even the coveted Binance, BitMEX is notably absent. As the wary eye of regulation is cast over the cryptocurrency market, however, surely no exchange will be exempt from unprecedented scrutiny.

Cover Photo by D A V I D S O N L U N A on Unsplash

Posted In: Bitcoin, BitMEX, Crypto Exchanges

The above advertisement is an affiliate link. CryptoSlate will earn a small commission if you sign up.

Like what you see? Subscribe to CryptoSlate

Get our daily newsletter containing the top blockchain stories and crypto analysis straight to your inbox.

Sign up to stay informed
Jonnie Emsley
Author

Jonnie Emsley

Journalist @ CryptoSlate

Jonnie Emsley is a freelance writer and blockchain enthusiast based in Ho Chi Minh City, Vietnam. Discovering new corners of Southeast Asia and emerging cryptocurrencies give him a buzz like none other.

View author profile

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.