Well then… that bull run didn’t last very long, did it?
In the early hours of today, the price of Bitcoin dropped from around $7,800 to $6,700 within just minutes on the BitMEX platform. Straight after that, the price of Ethereum followed suit as it sunk below the $200 mark.
The shocking drop of Bitcoin was more than likely triggered by the placement of a big sell order on Bitstamp and other big major crypto exchanges.
Stop run on stamp to trigger Bitmex liquidations. pic.twitter.com/RBmtjr88mT
— Light (@LightCrypto) May 17, 2019
A developer at Gnosis, Eric Conner has said:
“For reference, someone put a 5,000 BTC sell on Bitstamp, which BitMEX uses for 50% of its feed and it appears to have tripped some algorithms which made a cascade on BitMEX.”
On top of this, on Twitter, he said:
“A whale crashes the entire crypto market 20% in 5 minutes with a single sell order on the books and people actually think an ETF is coming? 🤣”
Conner is indicating that one whale has manipulated the whole crypto market, which could have a knock-on effect for the chances of an ETF approval in the short-term.
According to Joseph Young for CryptoSlate:
“The 5,000 BTC sell wall on Bitstamp that led to the sell-off of both bitcoin and Ethereum on BitMEX, led to a $30 billion drop in the valuation of the crypto market overnight.”
But even so, over the last week, the price of Bitcoin reached a new 2019 high around the $8,500 mark.