The BitMEX platform's derivatives are especially harmful to unregulated markets as these futures are settled in asset (BTC) instead of fiat.
When a contract settles or is sold on a BTC settled futures platform, the winner gets BTC (both short and long winners get BTC). The spot (fiat) market controls the settlement price and cannot be bought up with BTC. It can ONLY be sold down with BTC.
In a normal market there would be competing long traders offsetting the short traders. These long traders would be attempting to manipulate the spot up and therefore profit from their futures contract longs. This cannot happen in a BTC settled futures market without massive outside cash reserves. There is no way for a long trader to make fiat in order to buy the spot market up, they can only make BTC. The manipulation process ONLY works to the downside on BitMEX BTC settled futures. Since BitMEX is far and away the most volume, there is no competition for the short manipulators.
The manipulation cycle works like this:
1. They shorted futures, then dumped their BTC on the spot market causing their short futures positions to be profitable 2. They then close some futures and are paid in BTC from the people who took the 'long' side of the contract. 3. They open more short futures contracts and then dump the BTC they just earned on the spot market Finex, Stamp, Coinbase causing the new short futures contracts to be profitable.
The amusing part of this is that they are using the LONG traders own BTC to dump on the spot market causing the LONG trader to lose more money on the futures contract they hold.
Exactly. Also BitMEX runs its own for-profit market maker.
Jacob Thomas
This is spot on.
The Bart patterns are Bitmex-Barts. Their market maker team dumps BTC to pay their bills causing the large 80m candle moves. Or Bart up to stimulate liquidity volume
This triggers a cascade of bot trading which ddos's their infrastructure preventing retail trading and continued movement
Then why does anyone take the long futures side? how are there enough idiots to buy the longs?
Christopher Ramirez
greater fool theory
Grayson Ross
In simpler terms: a bear market, thanks to BitMEX's innovate settling solution, is infinitely self-sustaining barring an absolutely unstoppable change in sentiment.
Many people think they're the special ones who are smart enough to call the bottom.
Bentley Ward
welcome to the unregulated libertarian marketplace
The crypto market is a zero sum game. Your profit is someone else's loss. We are not Robin Hood's or Angel's of Mercy. We are not standing up for the poor, not building a better world - that's what the developers do. In the Market we are Pirates. We take. Time to get real.
The tail doesn't wag the dog, futures don't affect the price. Futures are zero-sum bets on what the price will be, the actual bitcoin exchanges determine the price.
Owen Harris
Explain why this wouldn't work then. It would.
Joseph Cooper
What he is saying is all the OTC buying is being sold on the market while making leveraged shorts. This is clearly happening. Luckily BTC is capped and will eventually be harder and harder to buy OTC from miners. This is a long game in 1 decade we will experience almost 3 halvings. Just be patient and get another hobby.
Jacob Hughes
Price prediction for BTC 10 years from now?
Eli Ramirez
How the hell would I know? I'm just a delusional bagholder that occasionally uses BTC to buy Nootropics and LSD. But I am trying to send as many positive thoughts to all anons.
Evan Brown
lets assume they indeed control the price and can liquidate shorts and longs how they want, why would they dry the volume up and let it die? Would you kill the golden goose and throw it in the garbage? or would you continue taking its golden eggs for many years?
When will Arthur Hayes be arrested? Further, is it possible BitMEX can be shut down? Pls SEC
Samuel Roberts
it never dies.
Oliver Evans
The artificially simulate volume with their market maker team to keep appearances so greater fools keep trading
Connor Walker
The only people that are making money are the shooters since Feb. they fycking killed the market. And sucked all the fiat out of the market
Christian Carter
This nigger looks like a fucking monkey. There has to be a Jew somewhere this faggot.
Luke Morris
So weird to see a gif on biz that isn't gore, racebait or some sweaty braphog. I'm honestly shocked.
Alexander Smith
Futures dont affect the price, but the lack of fiat certainly does. All a shorter needs to do to make money is market sell his BTC on Coinbase Pro to dump the price, but a longer needs actual fiat, not just BTC, to make money on bitmex. And when the shorter inevitably makes more BTC in profit, he can use that BTC to push the price down even more.
Nathan Richardson
Bitmex banned all US citizens so no the SEC can't do anything
Ryan Hall
This shit is a scam, they have in-house market maker algorithm which always gets the best bid/ask. You can't do anything. The limit order gets posted 1 microsecond before the spread get freed
Brayden Myers
>what is funding rate arbitrage Get your uneducated ass out of here, if futures didn't affect the price, I wouldn't be making money right now
Adrian Ortiz
Bitmex cant move btc price, they can however tell big players where liqs are.
Lets assume i have 1000btc, i would just join a group, give them my btc and they just use the bots to move where other no-insider whales are making profits for me and for them.
Its an unregulated market, but it copy spot, bitmex was created solely by this pourpose.
Jace Martin
the market ain't dead, bull market will come back so the game doesn't die. They will be pumping the price to an ATH again at some point going with the market cycle chart, to suck more money in for them steal. whales can't make money from a dead market
With a lot of USD you can do the reverse and let the Bitmex short bots feed you money right? The market cap of BTC is low enough that the combined power of USD holders is vastly more than BTC holders and BTC only markets.
Adam Foster
>i would just join a group, give them my btc and look at them exit scamming with my 1000btc
You couldn't even go to law enforcers cause you were attempting to do market manipulation.
Because mexican gangsters controlling market is so much better
Ryder Allen
This.
Samuel Sanchez
The total number of contracts, or in other words the effective USD value of all the longs or shorts that have been liquidated. (1 “contract” = 1 USD) It’s saying there tends to be a lot more liquidations of longs than of shorts, measuring by the total volume of USD they’re worth.
I have a question then....if it never end then they will just keep gaining bitcoin but they dump the price so their gains are just breaking even .. also if they dump it more their gains will also lose value....
