BTC/USD: BitMEX goes offline, scares traders with $0.00 quote for XBT/USD

The trading platform for cryptocurrency derivatives BitMEX went offline on Tuesday ahead of the US opening. Both website and API of the exchange were unavailable. The company reported that the sudden downtime was caused by issues with the trading engine and assured users that all funds were safe.

We’re working to bring the BitMEX platform back online as soon as possible. All funds are safe, delayed orders will be rejected, and no liquidations will occur during downtime. There will be a cancel only period on coming back online.

The reaction of the community was furious. Several traders even compared BitMEX with a notorious Mt. Gox that lost 850,000 BTC of users’ funds in 2014.

Notably, the platform quoted Bitcoin swap XBT/USD at $0 right before it went offline. Currently, there is no clear information if it was a bug or someone managed to close the position at a zero price. 

Also, there were some speculations that Bitcoin’s price is on the verge of the massive collapse as unexpected technical issues on large cryptocurrency exchanges often coincide with bouts of market volatility.

Meanwhile, BTC/USD is changing hands at $9.670, little changed from the start of the day. While Bitcoin managed to recover from the intraday low of $9,455, the upside momentum seems to be limited at this stage, while a sustainable move below $9,500 will bode ill for short-term BTC bulls and create a strong downside momentum with the next focus on $9,000.

BTC/USD daily chart