Why people are apprehensive about the upcoming Bitfinex downtime

06 Jan, 2019 | Updated: 07 Jan, 2019
by Will Heasman
News
Why people are apprehensive about the upcoming Bitfinex downtime

On the 7th of January, Bitfinex has planned “up to 7 hours” of maintenance while it migrates its data to a dedicated server. This has caused a ripple of mixed emotions throughout the crypto space, due to one thing and one thing only… volatility.

Historically planned maintenance has played havoc with the market, initiating either a pump or a dump and leaving some investors to speculate that manipulation had occurred. One instance of this happened in August last year when the popular exchange BitMEX scheduled maintenance which caused prolonged downtime. During the time in which the exchange was offline, $12 billion was added to the total market cap of all cryptocurrencies, giving Bitcoin (BTC) alone a boost of $300. 

It's not entirely clear why this phenomenon occurs, some say its due to a lack of access to BTC short positions, which typically bring the price down. The more conspiratorially-minded among us believe that it may be due to foul play from the exchanges themselves. 

Despite the community’s concerns, it appears that fears are fairly unfounded. BitFinex’s BTC transaction volume is relatively low when compared to the entirety of BTC trade volume, meaning that volatility (if any) probably wont be enough to dramatically affect the market.

Read more: Bitfinex plans major maintenance, with 7 hours downtime; BitMEX goes offline, Bitcoin spikes by $300; what does this mean for the market?

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Poll

Are you worried about the potential volatility?

(31 votes)

Add a comment

Hope Bitfinex will do better..
06 Jan, 2019 - 18:38
Bitfinex will do their best, I believe
07 Jan, 2019 - 08:36
Be sure Bitfinex will do the best. I'm excited =)
24 Jan, 2019 - 23:48
They are always doing their best, so there are no worries that this maintenance will make bitfinex better
08 Jan, 2019 - 04:15
They already did all the best.
12 Jan, 2019 - 02:54
I suppose it is not a planned speculation but just an implication of maintenance work. Bitfinex is just moves on own dedicated servers.
But every crypto journalist is going crazy about it. Not surprised because they need to make money on media posts anyway.
07 Jan, 2019 - 07:19
I think you are right. Best servers, faster trading.. isn`t it good?
I believe it is great news for users!
09 Jan, 2019 - 15:24
Oh, haters want to make Bitfinex hurt and write some fake news and posts.
I have no worries about Bitfinex, surely
07 Jan, 2019 - 08:08
There is a great numb of the fake news.
Hope they will delete it soon
13 Jan, 2019 - 19:55
yes i hope too. it is not good to post fake bitfinex news
08 Feb, 2019 - 09:45
That volatility is temporary. Pretty sure that nothing will happen and will stay as usual after Bitfinex end their servers migrating.
07 Jan, 2019 - 08:37
That's right. These are only temporary problems that will not affect the Bitfinex work.
09 Jan, 2019 - 17:59
I am sure that new Bitfinex servers will provide even better qualiuty of service.
07 Jan, 2019 - 09:12
And again everyone is crazy about Bitfinex news. You are making a big thing from nothing.
07 Jan, 2019 - 09:21
I don't know what did they expected. Every time huge exchange is going to maintenance it takes an effect on the market. That is not Bitfinex fault at all.
07 Jan, 2019 - 09:25
Don't you worry about that situation. If you're afraid of prices hops you can just wait for Bitfinex to finish their migration.
07 Jan, 2019 - 09:35
What is your profit in making panic about that situation? There's nothing special about Bitfinex maintenance work.
07 Jan, 2019 - 10:03
I don`t think that real users of Bitfinex are angry about it. It is not a big deal to wait a little, but after that we`ll get even better platform.
08 Jan, 2019 - 05:07
You see.. now everything is okay and people didn't have to worry about it
08 Jan, 2019 - 14:48
People afraid because there is a lot of manipulation on another exchanges during technical maintenance is. But Bitfinex established itself as transparency and secure exchange...
08 Jan, 2019 - 20:13
yes you are right. we are scarred to be scammed again. I hope bitfinex is not fraud
09 Feb, 2019 - 09:06
I don't see any negative reasons not to trust Bitfinex. Considering the fact that Bitfinex is the one of the largest exchanges it is normal that it provides some technical maintenance.
08 Jan, 2019 - 21:24
There are only panicky around . Well, somehow you need to be calmer, and if you're so fearful, don't do crypto at all. Bitfinex is a good exchange
08 Jan, 2019 - 21:53
Real users are not upset with it.
these are haters who pump the worst news. Forget about it
09 Jan, 2019 - 14:57
bitfinex is an exchange of the high level. they will not loose all the users by such manipulations
09 Jan, 2019 - 21:43
sure. the right thoughts man. bitfinex dont want to lose users
09 Jan, 2019 - 22:53
Bitfinex is just improving their platform.
10 Jan, 2019 - 15:23
Not everyone understands it.. Bitfinex did the best
13 Jan, 2019 - 06:56
I'm loyal to Bitfinex, everything is fine there
10 Jan, 2019 - 17:09
“maintenance has played havoc with the market, initiating either a pump or a dump” This is more typical of Coinbase. They like dirty games
10 Jan, 2019 - 20:49
Looks like it is a trick of coinbase
13 Jan, 2019 - 18:31
Bitfinex didn’t have any problems earlier, why do you write about something possible, comparing it with the exchange, which has problems during maintenance. Are you so sure that Bitfinex will do the same? Why then you write this?
10 Jan, 2019 - 21:14
we experience Bitfinex' developments, happy 🙃
18 Jan, 2019 - 16:47
you feel the difference now?
22 Jan, 2019 - 18:37
thanks god bitfinex servers movement went smoothly
08 Feb, 2019 - 18:44
yep, is better to work on bitfinex now
01 Mar, 2019 - 10:06
people always speculate about bitfinex and its actions even if it is just normal and planned maintenance break
20 Mar, 2019 - 12:36

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