Ripple Price Crashes to $0.14 on BitMEX Crypto Exchange

After an encouraging rally, Ripple price crashes unexpectedly, causing huge liquidations on BitMEX crypto exchange.

February 13, 2020 | AtoZ Markets – After a sharp rally, the price of XRP, the third biggest cryptocurrency, has unexpectedly crashed from $0.32 to $0.14 in one trading candle on BitMEX exchange. Now, XRP traders are enraged while counting their losses from the trading glitch.

XRP price flash crashes to $0.14, liquidating many traders

Jacob Canfield, Bitcoin analyst, noted the Ripple price crash had wide repercussions and was not a harmless mistake.

After the event, traders started to report the BitMEX platform also failed to trigger their stop losses, leading to immediate liquidations. Such a move was unexpected for XRP, which usually holds its price rather stagnant. One trader reportedly lost all his funds in one move.

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But with the effect of futures, BitMEX is now even risker. The exchange triggers liquidations in cases of significant and rapid price moves, taking away traders’ collaterals. The potential for gains from liquidations has sparked speculations for deliberate triggering of events to cause liquidations.

XRP rally couldn't prevent liquidations

The flash crash and liquidations happened at a time of great enthusiasm for the future of XRP. The asset has been expecting a bigger breakout, supported by its large community. The enthusiasm for XRP even brought down the Fiatleak website:

The XRP market is coming out of months of low activity, suddenly seeing breakout volumes. But the BitMEX contract may undermine the reputation of XRP, and also underline the risk of one of the largest futures markets.

XRP, which went as high as $0.33, was having one of the most successful days of the year, with trading volumes exceeding $6 billion in the past 24 hours. But the rally was unstable, and the losses on BitmEX were a mix of traders who misunderstood the platform, as well as unexpected illiquidity.

Will BitMMEX compensate XRPUSD traders?

At the moment, BitMEX exchange has not indicated that it would use its reserves to compensate the affected traders in the XRP market. The exchange recently caused significant liquidations on BTC, when the price moved down 4% in another trading anomaly.

XRP price was also highly unstable this morning, as Binance also noted a trading glitch. The price anomalies for XRP were due to an order book delay, and not related to the event on BitMEX. Binance also caused confusion across all types of assets, fostering a brief BTC flash crash.

What do you think about the Ripple price crash on BitMEX exchange? Share your thoughts in the comments section below!

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