Understand the digital assets industry, from short-term market signals to long-term fundamentals. Formerly Arcane Research.

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Is the BitMEX era over?

Oct 6, 2020

Market Update

BitMEX has been the big talking point over the past week, as the CFTC charged the exchange and arrested the CTO. This affected the market negatively last week, but it is slowly starting to recover again.
The bitcoin volume is continuing to trend downwards and Saturday’s volume was the lowest since late February. The volatility in the market is back at historical lows, and it is not unlikely that we get some more action in the market soon.
BitMEX is not having a good year, and lost a big portion of its market share with last week’s news. The exchange started the year with over 35% of the total open interest, but is now down below 17%.

Valuation

A bullish monthly close for the bitcoin price, as it looks like the price is flipping previous resistance to new support.
BitMEX’s December contract has lost its entire premium to its perpetual this week, as traders lose faith in the once leading derivatives platform.

Blockchain Activity

A massive withdrawal of BTC from BitMEX over the past week, as investors seek to secure their funds. BitMEX saw 27% of its exchange balance being withdrawn in a span of 4 days following the CFTC charge.
A record amount of BTC has remained unspent over the last year, while the unspent 2-year and 3-year supply sit at levels not seen since the summer of 2017.

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