Crypto derivatives exchange BitMEX has ramped up the leverage on its bitcoin perpetual swap, XBTUSD, from 100x to 250x in anticipation of the halving event.

According to BitMEX, the surge in leverage came in response to trader requests seeking to capitalize on the volatility expected during the upcoming Bitcoin Halving.

With the halving event projected to occur within the next 24 hours, the issuance rewards for bitcoin miners will decrease from the current 6.25 BTC per block to 3.125.

Stephan Lutz, CEO of BitMEX, expressed optimism about the opportunities for traders in 2024, emphasizing the potential for latecomers to the crypto space to still make a significant impact on their lives. Lutz highlighted the increased leverage of up to 250x for XBTUSD as a means to empower traders to maximize gains during the bullish market.

However, it's essential to recognize that heightened leverage also escalates the risk of trades resulting in liquidation should market movements turn unfavorable.

The XBTUSD perpetual swap, introduced in May 2016, has since emerged as the most traded crypto derivatives product, accumulating over $3 trillion in trading volume on BitMEX alone, the exchange reported.

Despite experiencing a sharp decline overnight, the price of bitcoin has rebounded and is presently hovering around $64,500, as per The Block's Bitcoin Price Page.