Traders start losing control of open positions as BitMEX begins its staged shutdown

What happened

BitMEX has started a staged shutdown. New positions stop being opened at 04:00 UTC, and the exchange can now close existing trades before September 23, meaning traders are losing control of their open positions.

Confirmed

Global impact / market context

This matters because traders with open positions on BitMEX may be forced to close them early, potentially locking in losses or missing expected gains. The shutdown could also reduce trading activity and affect prices of assets like ETH and stablecoins.

Analyst inference

The shutdown of a major exchange like BitMEX can reduce market confidence and trading volume. This may lead to price swings in cryptocurrencies, as traders adjust positions elsewhere. Stablecoins like USDT and USDC might see increased use as traders move funds.

Analyst inference

What to watch

1. Watch for the exact time of 04:00 UTC when new positions stop, as this is the first confirmed deadline that will limit traders' ability to enter new trades on BitMEX. Confirmed
2. Watch whether BitMEX exercises its discretion to close existing trades before September 23, which could accelerate position closures and impact traders' strategies and outcomes. Proposed
3. Watch for shifts in trading volume on other exchanges as BitMEX users move their activities, which could affect prices of ETH and other assets during the shutdown period. Analyst inference

Affected assets

• 00 — 00 Token
• BMEX — BitMEX
• USDT — Tether
• ETH — Ethereum
• USDC — USD Coin

Evidence

• cryptoslate.com