- BitMEX adds EOS, Tezos, Chainlink, and Cardano Futures
- The previous successful launch of ETH/USD Quanto Futures prompted the move
- Mass BitMEX BTC liquidation triggered a 10% drop in Bitcoin price
Cryptocurrency News Today – the range of cryptocurrency futures contracts in the industry has just reportedly been expanded by BitMEX exchange after it rolled out new offerings for four major digital assets. The crypto exchange, which is renowned in the industry for offering highly leveraged trading options, listed four additional altcoins to the Quanto Futures product. According to the official announcement the Altcoin/USDT contracts better show the underlying positions that many traders are taking. These positions were picked in response to the rise in demand from BitMEX customers. Here is how the exchange put it:
“USDT pairs make up more than 60% of the overall volume of Altcoins. With the new listings, BitMEX is offering users trading options to meet their requirements.”
Previous Successful Launch of ETH/USD Quanto Futures Prompted the Move
The exchange said that Tezos and LINK remain two of the biggest market capped and heavily traded tokens. It added that ChainLink will become the first DeFi-related contract to be made available on BitMEX. It also added that the recent successful launch of the ETH/USD Quanto Future has prompted it to broaden its futures contracts. No wonder it has introduced more altcoin futures. It also announced that more options will follow in the future.
Futures contracts aren’t necessarily bullish for crypto prices because they offer the opportunity to short the digital asset. A futures contract is an agreement to sell an item at a future day at a particular price. This time is usually decided presently. For digital assets, futures contracts are typically listed in exchanges. In the case of BitMEX, the exchange becomes the intermediary.
Mass BitMEX BTC Liquidation Triggered a 10% Drop in Bitcoin Price
Additionally, BitMEX offers perpetual swap contracts for Bitcoin, Ethereum, and XRP. BTC has leveraged about 100x and the rest of the pack has leveraged 50x. The bulk of the comments that came after the announcement shows the dangers of highly leveraged trading. It appears that Bitcoin’s recent 10% price drop may have been triggered by a mass liquidation of long positions in BTC on BitMEX exchange.
Based on data given by Datamish.com, no less than $225 million worth of BTC long positions were liquidated on BitMEX exchange in the last 24 hours of trade. This typically causes a cascade effect because stop losses will be activated and the selloff will accelerate. The 10% drop came in two stages. For the first, the coin posted a fall from $11,400 to $10,750. This position remained for eleven hours before the price was dumped again to its current position of $10,250