- Alex Kruger tweeted that there are rapid changes in order books of BitMEX.
- Market meltdown leads to the destruction of BitMEX’s order book. High Volatility arises.
- Circuit breakers are triggered when the closing price of assent records 1,3 and a 20 percent drop in a commodity.
The global markets suffered a heavy meltdown yesterday, leading to a major impact on crypto markets. May cryptocurrencies suffered their largest single-day price fall in recent times.
This rapid downfall leads crypto investors in shock, in response, they started liquidations through crypto exchange BitMEX. This major price swing was so concerning for the trades.
Due to this rapid liquidation, BitMEX went down. Many analysts pinpointed that there is a drastic fall in the numbers of traders in the crypto exchange platform. This rapid liquidation really is really a negative sign for the crypto market.
People are finding ways to prevent such crash downs. One way to prevent crash downs like that is to adopt a stock market like circuit breakers. A bold move suggested by Tushar Jain. Circuit breaker technology mostly used in the U.S. stock market. This technology is never been used in the cryptocurrency market.
Circuit breakers are triggered when the closing price of assent records 1,3 and a 20 percent drop in a commodity. In response, the breaker pause trading for 15 minutes so that it can prevent further downfall so that investors can decide there next move regarding there investment.
This is Bitmex's orderbook. There's usually beefy orders (in the millions) in the top of the book. Look at it now: 57K and 90K. See how price is jumping around. Those are very large swings in a few minuets. pic.twitter.com/qCIVh3iArd
— Alex Krüger (@krugermacro) March 13, 2020
Alex Kruger, an economist tweeted that
“This is BitMEX’s order book. There’s usually beefy orders(in the millions) in the top of the book. Look at it now; 57k and 90k. See how the price is jumping around. Those are very large swings in a few minutes.”
According to Alex Kruger, yesterday’s meltdown blows away the major number of crypto traders from the market and scared market makers and crypto exchanges.