A flurry of Bitcoin whale deals on the Bitstamp crypto exchange are blamed for the recent fall BTC from $ 8 056 to $ 7 475.
Nearly 400 BTC were traded within four minutes after Bitcoin plunged 7% on Wednesday. Trustnodes .
The sale may have triggered a domino effect that pushed the price of BTC on all crypto exchanges.
“124 BTCs were sold at 12: 41 at London time, which led to a reduction in prices from 7 900 to 7 700 dollars.
A small attempt to bounce back was met by selling 115 bitcoins in 12: 42, as a result of which the price dropped to 7600 dollars.
In 12: 43 and 12: 44, there were two more sales around 75 BTC each, which completed what looked like a very accurate operation and reduced the price of 100 dollars per minute. ”
The BitMEX derivatives exchange bases its index price for BTC on Bitstamp data and Coinbase.
This gives whales a potential incentive to sell large quantities of Bitcoins on Bitstamp, betting that the price will drop on BitMEX.
Back in May, Bitstamp announced that investigates a huge order to sell bitcoins, which probably triggered a similar widespread crypto crash.
“This is nothing new for other commodity markets, where courts found banks guilty of falsifying prices for gold, silver and even fiat money.
There, however, falsification against old stuffy people, holding on to old-fashioned gold or silver, and here against coders and the new young generation. ”
Analysts also point to testimony of Mark Zuckerberg before US lawmakers as another possible factor for Bitcoin to drop below 8000 dollars.