After the massive spike last week, when the price of Bitcoin (BTC) has reached the level of $8000, and many experts predicted further growth in the leading cryptocurrency to $10,000, suddenly, the coin fell.
There was much speculation about the causes of the collapse, and some in their reports, decided that SEC was involved in this price drop.
The online edition of Smartereum published a very interesting information, claiming that the SEC may be to blame for the drop in the price of the cryptocurrency, since it always followed the ICO hosted on the blockchain, ostensibly to protect ordinary investors.
Bitstamp has launched an investigation
In addition, based in Luxembourg, the crypto currency exchange Bitstamp announced that it’s launching an investigation into placing large sell orders of Bitcoins, which, as suggested by other users, caused a collapse of BTC this Friday.
“Today, on our platform in the trading pair BTC/USD has done a great amount for the sale, which had a great influence on the bid book. Our system has processed and executed the order, after receiving it, according to the regulations of work without seeing in it a problem. We are always attentive to the orders, which involve large-scale movement of the coins in the order book, and immediately studied its details”.
Some users have noted that if the order was placed and executed with the aim to provide maximum impact on the market, that person can be fined and potentially blocked, depending on the jurisdiction. However, many realize that the reality of malice is almost impossible to prove.
The Domino principle
According to reports, this sale has crashed the price of BTC on Bitstamp, which fell from $7800 to $6250 in a matter of minutes. This fall has caused the elimination of a huge number of long positions on BitMEX, which calculates the index BTC on the basis of the average price between Bitstamp and Coinbase Pro.
As the elimination of on BitMEX triggered a Domino effect, and the price of BTC is falling all cryptomeria.
It should be noted that Bitstamp has not confirmed the exact size of this transaction, but the Donny Wang, the founder of private JSC Primitive Ventures, calculated that the sell order was around 5000 BTC.
Today BTC went up again, and its price, according to CoinMarketCap, now is $7920. While analysts are quite cautious, though, and expect growth in the value of Bitcoin in the long term.
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Tags: BitMEX Bitcoin Bitstamp