Post by icemandios on Mar 19, 2024 15:08:48 GMT
World's Largest Pension Fund To Diversify Into Bitcoin As BitMEX Sees Price Flash-Crash Below $9,000 Overnight
Tyler Durden's Photo
by Tyler Durden
Tuesday, Mar 19, 2024 - 09:19 AM
A spokesperson for BitMEX said the company investigated the incident and found evidence of “aggressive selling behavior involving a very small number of accounts that exceeded expected market ranges,” adding that its systems had operated normally and all user funds are safe.
“We launched an investigation as soon as we noticed unusual activity on our BTC-USDT Spot Market. Despite all our systems operating normally, we identified aggressive selling behavior involving a very small number of accounts that exceeded expected market ranges. Our compliance is thoroughly investigating relevant individual accounts, and will keep our users appraised of any necessary measures in the future," BitMEX spokesperson further told Cointelegraph.
“Someone just dumped 400+ BTC over 2 hours in 10-50 BTC clips on the XBTUSDT pair on Bitmex eating 30%+ slippage. They must've lost $4m+ at least,” pseudonymous crypto community member “syq” wrote.
“I'm guessing that they're done (for now?). Total volume so far is just shy of 1,000 BTC over 3.5 hours with a low of $8,900. Now BitMEX have disabled withdrawals,” they added.
The exchange later posted on X:
“This does not affect any of our derivative markets, nor the index price for our popular XBT derivatives contracts.".
According to Hayes, Bitcoin ETF issuers holding all the BTC would negatively impact the number of transactions on the Bitcoin network, and miners will lose any incentive to keep validating transactions.
“The end result is miners turn off their machines as they can no longer pay for the energy required to run them,” said Hayes.
“Without the miners, the network dies, and Bitcoin vanishes.”
But not everyone is buying that doom and gloom as MicroStrategy, one of the largest public holders of Bitcoin, has completed another convertible notes offering to increase its Bitcoin stash.
The notes sold in the offering amounted to $603.75 million, including $78.75 million aggregate principal amount of notes issued pursuant to an option to purchase.
“I’m going to be buying the top forever. Bitcoin is the exit strategy,” Saylor said after being asked if his firm would sell its stash counting 190,000 BTC at the time.
Additionally, as we noted last night, another potential source of bitcoin price upside: FX reserves, i.e., "another large sticky (potential) cash pool, which could follow in the footsteps of new US pension money."
Specifically, Kendrick says that US and EU sanctions on Russia’s reserves "have structurally increased the appeal of non-standard reserve assets for FX reserve managers. The most obvious beneficiaries of this are gold and the CNY, but digital assets could also benefit" (as they already have in El Salvador where Nayib Bukele has previously purchased over 5,600 bitcoin). If they do, expect the largest and most liquid assets – such as Bitcoin – to receive most of the inflows. Which is why, the Standard Chartered analysts sees "a rising likelihood that large reserve managers may announce BTC buying in 2024."
And sure enough, overnight we saw Japan's Government Pension Investment Fund (GPIF), the world's largest pension fund managing over $1.5 trillion in assets, has announced it will explore diversifying a portion of its portfolio into Bitcoin.
According to the announcement, the GPIF will solicit information on illiquid alternative assets like Bitcoin, gold, forests, and farmland as part of its diversification efforts.
While not currently invested in these assets, the move signals that the mega-fund is actively researching options beyond stocks and bonds.
The GPIF stated it seeks "basic knowledge about the assets targeted for information provision" and wants to understand "how overseas pension funds incorporate them into their portfolios."
With over $1.5 trillion at its disposal, even a tiny allocation to Bitcoin by GPIF could significantly impact prices and further legitimize Bitcoin.
Tyler Durden's Photo
by Tyler Durden
Tuesday, Mar 19, 2024 - 09:19 AM
Crypto exchange BitMEX is currently investigating “unusual activity” involving large sell orders on its BTC-USDT spot market overnight that sparked a flash-crash dragging the price of BTC (in USDT) down below $9,000 (while the price remained above $66,000 on other exchanges)...
Doesn't seem like a very smart move for the 'rogue seller' to dump over 400 BTC at that time of day into an illiquid market - why not wait until the US BTC ETF market is running its magic and sell into that liqudity?
The USD price of BTC has been falling ever since...
A spokesperson for BitMEX said the company investigated the incident and found evidence of “aggressive selling behavior involving a very small number of accounts that exceeded expected market ranges,” adding that its systems had operated normally and all user funds are safe.
“We launched an investigation as soon as we noticed unusual activity on our BTC-USDT Spot Market. Despite all our systems operating normally, we identified aggressive selling behavior involving a very small number of accounts that exceeded expected market ranges. Our compliance is thoroughly investigating relevant individual accounts, and will keep our users appraised of any necessary measures in the future," BitMEX spokesperson further told Cointelegraph.
“Someone just dumped 400+ BTC over 2 hours in 10-50 BTC clips on the XBTUSDT pair on Bitmex eating 30%+ slippage. They must've lost $4m+ at least,” pseudonymous crypto community member “syq” wrote.
“I'm guessing that they're done (for now?). Total volume so far is just shy of 1,000 BTC over 3.5 hours with a low of $8,900. Now BitMEX have disabled withdrawals,” they added.
The exchange later posted on X:
“This does not affect any of our derivative markets, nor the index price for our popular XBT derivatives contracts.".
Notably yesterday saw the biggest net outflows from the BTC ETF complex sincxe inception, dominated by GBTC liquidations...
Which is interesting given the timing of the flash crash and the fact that the former CEO of BitMEX, Arthur Hayes, previously opined that the spot Bitcoin exchange-traded funds (ETFs) could “completely destroy” Bitcoin if they are too successful.
According to Hayes, Bitcoin ETF issuers holding all the BTC would negatively impact the number of transactions on the Bitcoin network, and miners will lose any incentive to keep validating transactions.
“The end result is miners turn off their machines as they can no longer pay for the energy required to run them,” said Hayes.
“Without the miners, the network dies, and Bitcoin vanishes.”
But not everyone is buying that doom and gloom as MicroStrategy, one of the largest public holders of Bitcoin, has completed another convertible notes offering to increase its Bitcoin stash.
The notes sold in the offering amounted to $603.75 million, including $78.75 million aggregate principal amount of notes issued pursuant to an option to purchase.
“I’m going to be buying the top forever. Bitcoin is the exit strategy,” Saylor said after being asked if his firm would sell its stash counting 190,000 BTC at the time.
Additionally, as we noted last night, another potential source of bitcoin price upside: FX reserves, i.e., "another large sticky (potential) cash pool, which could follow in the footsteps of new US pension money."
Specifically, Kendrick says that US and EU sanctions on Russia’s reserves "have structurally increased the appeal of non-standard reserve assets for FX reserve managers. The most obvious beneficiaries of this are gold and the CNY, but digital assets could also benefit" (as they already have in El Salvador where Nayib Bukele has previously purchased over 5,600 bitcoin). If they do, expect the largest and most liquid assets – such as Bitcoin – to receive most of the inflows. Which is why, the Standard Chartered analysts sees "a rising likelihood that large reserve managers may announce BTC buying in 2024."
And sure enough, overnight we saw Japan's Government Pension Investment Fund (GPIF), the world's largest pension fund managing over $1.5 trillion in assets, has announced it will explore diversifying a portion of its portfolio into Bitcoin.
According to the announcement, the GPIF will solicit information on illiquid alternative assets like Bitcoin, gold, forests, and farmland as part of its diversification efforts.
While not currently invested in these assets, the move signals that the mega-fund is actively researching options beyond stocks and bonds.
The GPIF stated it seeks "basic knowledge about the assets targeted for information provision" and wants to understand "how overseas pension funds incorporate them into their portfolios."
With over $1.5 trillion at its disposal, even a tiny allocation to Bitcoin by GPIF could significantly impact prices and further legitimize Bitcoin.