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As of Cryptopolitan reported on October 2, more than 32,200 Bitcoins were withdrawn from the derivatives exchange, and that represents about 19 percent of the entire funds locked with the exchange for trading purposes.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.”
Fundamentally the market is scared for all the wrong reasons.— Willy Woo (@woonomic) October 2, 2020
MEX did NOT get hacked. No traders will lose coins.
Futures exchanges will clean up their practices.
We’ll see less volatility, less scam-wicking, more spot volumes, more organic moves, more institutional money.