Leading cryptocurrency derivatives exchange BitMEX has announced an increase in the leverage ratio for its perpetual futures contract XBTUSD from 100x to 250x, just before the eagerly anticipated fourth Bitcoin (BTC) block reward halving. According to BitMEX, this adjustment was made in response to trader demands aiming to take advantage of increased market volatility expected before the upcoming fourth block reward halving.
High Leverage Offer for Traders Before Block Reward Halving
With the fourth Bitcoin block reward halving expected to occur within the next 24 hours, where the BTC reward per mined block will decrease from 6.25 to 3.125 BTC, BitMEX has made a notable move by increasing the leverage ratio for its perpetual futures contract XBTUSD from 100x to 250x.
BitMEX CEO Stephan Lutz emphasized that 2024 is a crucial year for both BitMEX and cryptocurrency traders, expressing optimism about the opportunities presented by the block reward halving. Lutz mentioned that they increased the leverage ratio for XBTUSD from 100x to 250x in response to trader demands, highlighting that high leverage offers newcomers in the cryptocurrency market the potential to enhance their financial well-being.
It is important to note that the increased leverage ratio also presents a higher potential for significant losses and the risk of liquidation. Investors should be cautious in managing the heightened volatility associated with leveraged trading and diligently apply risk management strategies.
Cumulative Trading Volume Exceeds 3 Trillion Dollars
The perpetual futures contract XBTUSD for Bitcoin, launched by BitMEX in May 2016, has since become one of the most traded cryptocurrency derivative products in the market. With a cumulative trading volume exceeding 3 trillion dollars solely on BitMEX, XBTUSD has gained significant popularity among traders looking to profit from Bitcoin’s price movements.
According to CoinMarketCap, Bitcoin is trading at $64,516 after a 5.07% increase on the day, with less than 24 hours to go before the fourth block reward halving. Historically, block reward halvings have triggered strong rallies, and market observers expect a robust upward move in the leading cryptocurrency following the upcoming halving.
