With Bitcoin losing over $1000 in value just two days to its halving, exchange platforms are pumping more money into Bitcoin insurance funds for added security.
The much anticipated BTC halving is expected to occur in just a few hours, on May 12. On May 10, BTC dropped from $9,698.39 to close at $8,681.06. This drop represents a negative 11.72% change in the market.
Crypto exchange Binance, announced it would pump more Tether (USDT) into its insurance fund. Binance has previously used derivatives as a means of protection against auto-deleveraging (ADLs).
Two weeks ago, on April 30, Binance injected 7.5 million USDT into its insurance fund. However, between May 10 and May 11, the fund balance dropped from 21,005,925 to 7,731,989 USDT. In response, Binance stated it would pump 30 million USDT into its insurance fund.
At the closing on May 9, there were only 58 bankruptcies among BTC traders. But on May 10, that number shot up to 386 before dropping to 16 on May 11.
As the price becomes more erratic in the days leading up to the halving, BTC has still managed to stay above $8500.
Other exchanges such as Huobi, BitMex, and Okex also experienced a drop in insurance balance, although not all breakdowns figures have been made available.