Bitfinex offline for 7 hours: Will this push Bitcoin further?

26 Jun, 2019 | Updated: 26 Jun, 2019
by Will Heasman
Exchange
Bitfinex offline for 7 hours: Will this push Bitcoin further?

As Bitcoin continues its march ever upward, adding once more to its parabolic stint above five figures, the popular crypto exchange, Bitfinex, has announced “scheduled maintenance” and will apparently be down for around 7 hours today from 8.45AM (UTC); could this push Bitcoin further?

The words “scheduled maintenance,” often strike fear into the hearts of most exchange goers as this phrase has become synonymous with hacks, or even exit scams. Luckily for Bitfinex users, the exchange has noted that the maintenance is to upgrade and “enhance the stability and scalability of the iFinex matching engine.”

According to an official announcement, during the downtime, users will be unable to trade or access their wallets.

Although the exchange relays that no orders will be executed during the upgrade, they do add the caveat that significant price movements during this time would open up the risk of liquidation following the reopening of the exchange.

Can downtime affect the price of Bitcoin?

Historically, scheduled maintenance has coincided with some kind of pump for Bitcoin; most notably, back in August last year, popular exchange BitMEX scheduled maintenance which caused prolonged downtime which catalyzed a pretty impressive pump for Bitcoin. During the time in which the exchange was offline, $12 billion was added to the total market cap of all cryptocurrencies, giving BTC alone a boost of $300.

The given reason for this is usually a lack of access to BTC shorts, which are typically responsible for tethering Bitcoin’s price down.

However, most users appear to be less worried about any potential pump and more concerned with the exchanges quizzical timing…

What do you think? Will we see Bitcoin rise during or after the scheduled maintenance? Let us know your thoughts in the comments!

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