Analyst Willy Woo explains why BitMEX case is bullish for Bitcoin


Two days ago, the United States Commodity Futures Trading Commission (CFTC) brought charges against popular digital currency derivatives platform, BitMEX. The exchange, among other things, was accused of operating illegally since it wasn’t registered with the regulator. Following the reported charges, most traders on the exchange seemed alarmed and triggered their withdrawal mode.

As of Cryptopolitan reported on October 2, more than 32,200 Bitcoins were withdrawn from the derivatives exchange, and that represents about 19 percent of the entire funds locked with the exchange for trading purposes. Those withdrawals caused a massive outflow of Bitcoin from BitMEX, which, on the other hand, was relatively increasing the inflows of other digital currencies exchange and non hosted wallets. 

Willy Woo: Traders are panicking for the wrong reason 

While BitMEX-CFTC development seems not encouraging for the cryptocurrency, popular on-chain analyst, Willy Woo, has recently shared that it is bullish for Bitcoin. At first, Willy Woo explained that the cryptocurrency market, especially the traders on BitMEX, are fundamentally panicking for the wrong reason. None of their digital currencies were reported to be lost, and neither was the derivatives exchange hacked. 

The CFTC charges against the exchange will instead, help to clean up the market from the dirty practices of Futures exchanges. While citing on-chain fundamentals, Willy Woo explained that there is a high influx of new Bitcoin investors presently, compared to the record noted during the mania phase of the last cycle (Dec 2017). However, the development isn’t reflecting on the price of cryptocurrency because of the ‘unfettered’ trading practices of derivatives platforms.

On this note, Willy Woo said that “BTC is going to pop.”

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Ibiam Wayas

Written by Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.