BitMEX has raised the leverage on its bitcoin perpetual swap, XBTUSD, to 250 times in anticipation of the upcoming halving event. This event, set to occur in the next 24 hours, will decrease the rewards given to bitcoin miners. In preparation for this significant event, BitMEX, a cryptocurrency derivatives exchange, has increased the leverage on its bitcoin perpetual swap from 100x to 250x.

This decision to enhance leverage was made in response to traders' demands, with the aim of taking advantage of the expected volatility surrounding the impending Bitcoin halving event.

Bitcoin Halving Event

The Bitcoin halving event is forecasted to happen within the next day. This event will lead to a decrease in the rewards miners receive for mining Bitcoin, reducing it from the current 6.25 BTC per block to 3.125 BTC. Stephan Lutz, the CEO of BitMEX, has shown confidence in BitMEX and crypto traders for the year 2024. He mentioned that the increased leverage to 250x for XBTUSD is designed to assist traders in maximizing their profits during the bullish market.

Increased Leverage and Associated Risks

It is crucial to bear in mind that while increased leverage can potentially result in higher profits, it also raises the risk of a trade going awry and ending in liquidation. The XBTUSD perpetual swap, launched in May 2016, has evolved to become the most traded cryptocurrency derivatives product in history. According to BitMEX, it has facilitated over $3 trillion in trading volume solely on their platform.

Despite experiencing a sharp decline overnight, the price of Bitcoin has recovered and is presently trading at around $64,500.