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Here's How Much BitMEX Makes in Fees from Derivatives Trading in One Single Day

  • Alex Dovbnya
    📰 News

    TokenAnalyst says that BitMEX is the biggest casino the world has ever seen

Here's How Much BitMEX Makes in Fees from Derivatives Trading in One Single Day
Cover image via u.today
Contents

According to TokenAnalyst co-founder Sid Shekhar, Seychelles-based cryptocurrency derivatives platform BitMEX rakes in about $700,000 in fees on a daily basis.  

"That’s where the money is to be made in crypto," Shekhar told Bloomberg while calling the Arthur Hayes-led exchange "the biggest casino ever."  

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The rise of BitMEX

BitMEX is definitely a force to be reckoned with in the cryptocurrency space given that it boasts more than $1 trln dollars in annual trading volume. The launch of perpetual Bitcoin futures that took place in 2016 turned out to be a great success for the exchange, making it the number one destination for margin trading. 

The introduction of 100x leverage added more fuel to the fire, attracting hordes of price speculators who want to get rich quick with a couple of trades. However, risk-loving traders seem to forget that it's the house that always wins.      

The exchange, which ended up in the CFTC's crosshairs back in July, faces a lot of criticism. Bitcoin hater Nouriel Roubini claimed that it was intended to serve "degenerate gamblers" during his much-talked-about debate with Hayes.   

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Gambling with Bitcoin

The popularity of Bitcoin derivatives experienced exponential growth in 2019. Blockchain data analytics startup Skew has estimated that they now exceed the top coin's spot volume by at least ten times. OKEx's Andy Cheung says that twice as many users trade derivatives instead of actual cryptocurrencies. 

Bloomberg points out that this is mainly caused by Bitcoin's waining volatility that makes futures trading an attractive option for those who still want to make it big in crypto. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Bitcoin's Parabolic Uptrend Remains Intact Despite Price Collapse: Tuur Demeester

  • Alex Dovbnya
    📰 News

    Tuur Demeester wants you to buy the dip as Bitcoin touches the support of its parabolic uptrend for the first time since March

Bitcoin's Parabolic Uptrend Remains Intact Despite Price Collapse: Tuur Demeester
Cover image via u.today

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Tuur Demeester of Adamant Capital has just taken to Twitter to calm down Bitcoin enthusiasts who might have been swayed by incredibly bearish sentiment on crypto Twitter. 

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Bitcoin recently dropped to $6,800, its lowest level since early May. However, Demeester apparently sees this as yet another opportunity to buy the dip. He states that top coin's parabolic uptrend that started at the beginning of 2015 hasn't been violated. However, Bitcoin has tapped support for the first time since March when Bitcoin was trading well below $4,000. 

Shortly after printing a huge red candle on the logarithmic chart, the Bitcoin price spiked by 20 percent on Apr. 2, which started the coin's massive run to $13,700. 

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Crypto Analyst Doesn't Expect Bitcoin Price to Repeat Past Halvenings

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As of now, BTC is down by nearly 50 percent from its yearly high, but this might not be the end of the nightmare for Bitcoin bulls. According to trading exert Josh Rager, the crypto king could plunge below the $7,000 level again after a fakeout to the $7,500 range. 

Gold bug Peter Schiff recently predicted that BTC could collapse to $10,000 level after competing the head-and-shoulders pattern.  

At the time of writing, BTC is sitting $7,313, CoinStats data shows. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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