Why is the price of Bitcoin lower on BitMEX?

3 answers

• Dec 18, 2021 · 3 years ago
  One possible reason for the lower price of Bitcoin on BitMEX is the high leverage offered by the platform. Traders on BitMEX can use up to 100x leverage, which means they can control a larger position with a smaller amount of capital. This high leverage attracts more speculative traders who are willing to take bigger risks, leading to increased selling pressure and lower prices on BitMEX compared to other exchanges.
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• Dec 18, 2021 · 3 years ago
  Another factor that contributes to the lower price of Bitcoin on BitMEX is the absence of fiat currency trading pairs. BitMEX only supports trading with Bitcoin as the base currency, while other exchanges offer trading pairs with fiat currencies like USD or EUR. The absence of fiat trading pairs limits the liquidity on BitMEX and can result in lower prices due to reduced demand.
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• Dec 18, 2021 · 3 years ago
  According to BYDFi, a digital currency exchange, the lower price of Bitcoin on BitMEX can be attributed to the platform's market dynamics. BitMEX operates a unique trading system called the perpetual swap, which has its own supply and demand dynamics. This can cause the price of Bitcoin on BitMEX to deviate from other exchanges. Additionally, the high trading volume and liquidity on BitMEX can also contribute to price discrepancies.
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