Bitfinexâs scheduled upgrade will shut down the exchangeâs operations completely for a few hours. It could very well have an impact on Bitcoinâs price.
Biitfinex will be down for a few hours and many are already speculating what the reason could be. A âsystem upgradeâ is planned for the entire Bitfinex ecosystem â affecting even Ethfinex as well. During this time, traders will be âunable to trade, view, or obtain access to their wallets during the update,â the announcement reads.Â
SponsoredWhereas any Bitfinex downtime wouldâve surely affected the cryptocurrency market just a year or so ago, the exchangeâs influence has dwindled since then. Boasting around $73M in daily trading volume at the time of writing, the exchange has been bogged down by accusations of shady behavior. This only became worse after the New York Attorney General waged a legal battle over Bitfinexâs alleged Tether-related fraud. As of now, the decision for that court case is still pending.
If one wants to better understand market sentiments towards Bitfinex, just look at its own token called LEO. Binance held an Initial exchange offering (IEO) for its own token called UNUS SED LEO to make up for the legal costs incurred and possible penalties. Raising some $1B during the IEO, it has decreased some -40% since June and is currently trading at $1.14.
Overall, it seems that Bitfinexâs downtime wonât hurt the Bitcoin markets much if at all considering the exchangeâs diminishing influence. However, Tether still holds the entire cryptocurrency market in its current tenuous balance. Therefore, anytime thereâs a âmaintenanceâ for Bitfinex, we should pay attention: something might be happening which should merit a closer look.
Do you believe that Bitfinexâs momentary shutdown will affect the cryptocurrency market in any way? Let us know your thoughts below in the comments.Â
