Small events taking place on large stock exchanges can often have a huge impact on the price of Bitcoin and altcoins. The upcoming Bitfinex and Ethfinex data migration is no exception.
Today it was announced that on January 7, 2019, Bitfinex and Ethfinex will be offline for 3-7 hours. IFinex (a financial and technology company that owns Bitfinex and Ethfinex) will switch from AWS cloud to a new Swiss data center with its dedicated servers and high-end equipment for high-volume trading.
IFinex cited speed and safety as two main reasons why they switch to a Swiss data center.
Temporary disconnection means that Bitfinex and Ethfinex traders will not be able to access their accounts for several hours. Since Bitfinex is one of the largest stock exchanges in the cryptocurrency market (the average trading volume per 24 hours is $ 372 million), it is not surprising that price manipulation occurs precisely when the stock exchange does not work.
A similar incident occurred earlier this year with the Bitmex exchange. The exchange announced that scheduled maintenance will take place on August 21, 2018. Shortly after Bitmex went offline, the price of BTC jumped to more than $ 400 (from $ 6,466 to $ 6,745). When Bitmex resumed online work, a huge number of short positions were eliminated at a time and brought Bitcoin another $ 300.
Based on this, it can be assumed that a similar incident may occur again during the migration of servers on the Bitfinex and Ethfinex exchanges.
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