Crypto derivatives exchange BitMEX has increased the leverage on its bitcoin perpetual swap, XBTUSD, from 100x to 250x ahead of the halving event.
“The increased leverage came upon requests from traders to profit from the volatility as the next Bitcoin Halving happens,” BitMEX said Friday.
The bitcoin halving event is expected to occur within the next 24 hours and will reduce the issuance rewards for bitcoin miners from the current 6.25 BTC per block to 3.125.
“2024 is a great year for BitMEX and crypto traders. I believe it’s also one of the last chances for those coming late to crypto to still make a difference in their lives and lifestyle,” BitMEX CEO Stephan Lutz said in a statement. “With increased leverage of up to 250x for XBTUSD we want to ensure traders can capitalize the most on the bull market.”
It’s worth noting that increased leverage can also raise the risk of the trade turning sour and resulting in liquidation.
The XBTUSD perpetual swap was first launched in May 2016 and has since become the most traded crypto derivatives product of all time, totaling over $3 trillion in trading volume on BitMEX alone, the exchange said.
Despite dropping rapidly overnight, the price of bitcoin has recovered and is currently trading at around $64,500, according to The Block’s Bitcoin Price Page.
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