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Bitcoin trading remains prone to liquidity dislocations without a clearinghouse

A discussion of recent market stress pointed to a BitMEX wind-down that still saw a perpetual futures wick above $150,000 on thin liquidity.

Reported · Written up by our desk · Market Structure

Bitcoin Magazine featured a conversation with UTXO’s Daniel Hinton about why Bitcoin’s 24/7 global trading environment can be difficult to keep efficient when there is no clearinghouse outside the blockchain itself.

The interview described how multi-percentage-point price dislocations between exchanges were routine in 2018, but said those gaps have largely disappeared since then.

It also referenced the recent BitMEX wind-down, noting that even as that market wound down, a perp market wick printed above $150,000, attributed to thin liquidity.

Hosts Grace Remington and Sean Hagan discussed what such moves can mean for participants who run margin or rely on stop-loss orders, emphasizing the operational risks that can arise in fast-moving, fragmented crypto markets.

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