Following the continued growth throughout the whole year of the BitMEX insurance fund CryptoQuant the data provider took a deeper look at the on-chain data of the derivative specialist as we are reading further in the latest blockchain news.
Over the past year, the BitMEX insurance Fund grew to virtually 33.5k Bitcoin (BTC) which represents a 62% growth from the 20.77k Bitcoin (BTC) that the Fund held it at the beginning of 2019. This means that 0.18% of all Bitcoin (BTC) that is mined till now is in the fund, which is growing from 0.15% in August of 2019 as DC Forecast reported back then.
CryptoQuant then examined the total mass of Bitcoin (BTC) held by BitMEX. This is at this time over 400k Bitcoin (BTC), which represents slightly more than 2% of the total supply at the moment.
CryptoQuant implied that this signified growth of over 500% for 2019, though the chart presented alongside this statistic looks like it’s in disagreement. It looks like growth from about 240k Bitcoin (BTC) to 440K Bitcoin (BTC) or the rise of around 83% in duration throughout the year. Comparing the charts gave the answer to the question about BitMEX’s proportion of the total Bitcoin (BTC) reserve that was held in the insurance fund. In August of 2019 this grown to be as high as 14% although, in the last part of the year, this fell back to about 7.5%.
A movement in this ratio is to be expected, as this insurance fund covers for all unfilled liquidations before the moment, they are received by the auto-deleveraging system of BitMEX. That the system works quite well is suggested by the fact that the funds were used in this manner on several days.
But the peak of 14% it seems to be more a kind of anomaly than an anticipated result because of the timing. The month before the August peak experienced a major fall of funds from BitMEX, after an alleged probe into the firm by the Commodity Futures Trading Commission (CFTC). Allegedly the Commodity Futures Trading Commission (CFTC) investigated whether the citizens of the US circumvent the established measures that have the goal to stop them from using the service.
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