The cryptocurrency community is abuzz with news of a $460 million Bitcoin overhang, while it waits for the shoe drop. The community and traders of OKEx have been following and keeping a close eye on the digital trail of a trader that has said to have accumulated a $460 million dollar long position on BTCUSD’s quarterly future without waiting for liquidity.
To the loss of OKEx, this liquidation has not been filled in the market, hence creating a $460 million dollar market overhang because of which the users of the OKEx exchange platform may have to give up more than 50% of their profit shares by the end of the week just to equalize for it.
Along with having to compensate for the market overhang because of this event, the exchange will also have to take into account and prepare for a massive loss in reputation amongst the community.
Largest Liquidation in History
The events of yesterday will go down in the history of the cryptocurrency market as the largest liquidation, as a long position of $460 million was called on BTCUSD. However, this is not the part that the community and the market has to worry about.
In this $460 million long position, only $40 million dollars’ liquidity has been filled. The rest of the $420 million remains unfilled and the execution of this sell-off by OKEx can essentially crash the market.
$460 USD Overhang in Weekly Statement
The liquidation that the community and users of OKEx are following so closely began a couple of days ago and seems to have culminated yesterday, with approximately 950 Bitcoins waiting to be bought.
However, at this moment not many people are interested in buying the bitcoins because the market is moving too fast and hence creating a $460 million dollar void in the market that is just waiting to be filled.
With the week coming to an end, the OKEx exchange platform will have to file its weekly statement and is most likely going to have a significantly large overhang to the tune of $460 million dollars and will have to find a way to replenish its void.
Which, unfortunately for the traders of BTCUSD futures, that they may have to give up more than 50% of the profits they have made in the last week to make sure that the pinch is not felt.
OKEx was contacted by multiple crypto media outlets looking for a statement on the happenings and for the platform’s officials to shed some light on how they plan to deal with the situation at their hands.
To which the platform has maintained a very uniform response and has said that they are aware of the situation and are contemplating their next step. They also added that they are expecting to be able to make an announcement soon about what has happened.
In the meantime, the news of this market overhang has become the source of a large amount of drama and speculation in the community. And has been a major area of public interest over the past couple of days, as the week is finally coming to a close.
More light is expected to be shed on the matter when OKEx makes an announcement which is expected before market close on Friday.
Also, read: Top 10 Altcoins to buy in August
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