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BTC Spikes to $6800, BitMEX Down for Maintenance

BTC Spikes to $6800, BitMEX Down for Maintenance

Bitcoin has stormed out of its week-long consolidation in truly dramatic fashion, yet the timing of the monster $5 billion buy rally has prompted a torrent of accusations from BitMEX users — seeming to coincide perfectly with the exchange’s scheduled downtime.

Bitcoin bulls seemed to come out guns blazing in one of the largest buy frenzies in weeks; pushing the coin up to $6800 — a near-6% spike in an hour. At time of press, Bitcoin market capitalization stands $5.2 billion higher than prior to the rally; however bears appear to be regaining strength as Bitcoin returns to below the $6700-mark.

Not all are convinced that the furious rally was organic, however. Occurring between 01:00-02:00 UTC, the rally appears to have overlapped precisely with the scheduled downtime of BitMEX — the world’s largest BTC/USD exchange by daily volume.

Don Le, CEO of blockchain research and investment group ChainRock, commented:

A Defenceless Short Squeeze?

BitMEX CEO: Bitcoin May Bottom Out at $3k to $5k and Still Reach $50k by 2018
Related: BitMEX CEO: Bitcoin May Bottom Out at $3k to $5k and Still Reach $50k by 2018

Despite a stream of positive regulatory developments and corporate sponsorship in the cryptocurrency space, a number of industry leaders have called for lower lows — including BitMEX CEO Arthur Hayes’ prediction of a $3-5k bottom.

Unsurprisingly, with shorts stacking up to their highest levels since mid-April, the radical buy rally has been called by many as a run on buy stops by the industry’s more calculated investors.

Once user, @Bacon_Chain tweeted:

Smart Money Blasts Small-Fry In Massive Bitcoin Pump
Related: Smart Money Blasts Small-Fry In Massive Bitcoin Pump

Judging by earlier price action, such explanations are fitting. Although Bitcoin is a relatively young asset, the market has recorded a number of textbook short squeezes in its brief trading history — perhaps most recently mid-April’s $16 billion pump.

The latest squeeze has been met with a chorus of newfound disdain by liquidated investors, who claim bulls unfairly took advantage of BitMEX’s maintenance — with traders unable to alter positions during the one-hour window.

Some see the move as par for the course. Xane Corvair pointed out that shorters were not being taken advantage of by the ‘whales’, as they so claimed:

Others seem to see more devious tactics at play, however. One Twitter user, @CryptoMistik, directly accused BitMEX themselves of orchestrating a “scheduled stop run”.

While such accusations may be viewed as extreme, the concerns of the cryptocurrency community have carried surprising weight. After facing a series of accusations of price manipulation in 2017, vocal Litecoin bull (and founder) Charlie Lee sold his entire stake in LTC to avoid conflict of interest.

As an outspoken commentator on the price of Bitcoin, BitMEX’s Arthur Hayes may have pushed exchanges into the same spotlight of heavy scrutiny as Lee.

Bitcoin | BTC

Updated: May 15 at 12:30 pm PDT
$6,706.11
4.62%

Bitcoin, currently ranked #1 by market cap, is up 4.62% over the past 24 hours. BTC has a market cap of $115.51B with a 24 hour volume of $4.16B.

Chart by CryptoCompare

Bitcoin is up 4.62% over the past 24 hours.

Cover Photo by Kasper Rasmussen on Unsplash

Filed Under: Analysis, Bitcoin, BitMEX, Crypto Exchanges, Price Watch
Jonnie Emsley

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.

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