With today's market recovering from the last Bitcoin [BTC]withdrawing the price of Bitcoin under $ 7,500, a hunt has followed the source. Bitstamp, the Japanese crypto exchange that saw a decisive order shaking in the market, is the spied source, but some dispute that claim.
Correction or manipulation?
The term "manipulation" has also been thrown around in light of the news breaking out that a massive sales order of around 5000 BTC was placed on Bitstamp. The order was executed at a low price of $ 6,200, while the market price of the coin was well over $ 8,000, leading to the downturn.
Bitstamps offensive catalysed BitMEX's massive liquidation of over $ 207 million long positions. Since the latter price index consisted of the weighted price of BTC on Bitstamp and Coinbase Pro, BitMEX prices also crashed briefly.
Manipulation rumors were driven by the individual nature of the transaction that triggered the crash. Furthermore, when the April $ 5,000 ascent was alleged to be initiated by a single auto purchase order with a significant amount of Bitcoins, manipulation forces cannot be waived.
Dovey Wan, co-founder of Primitive Ventures referred to the person behind the incident as a "jackass" who "put together a total sale of $ 5,000 BTC on [Bit] stamp".
Whatever the similarity between the guilty of a domestic animal, the aim of the withdrawal, whether planned or down to market forces, has not yet been decided, but remarkable analysts have thrown their hat into the ring, which does not indicate misinterpretation.
Weiss Ratings, the crypto-specific ranking company, which, at times, rubbed the crypto course industry the wrong way of predictions, suggested an absence of "manipulation" and termed the failure as a "normal market correction". When we quoted and immediately rejected the Bitstamp case, Weiss emphasized the time of the crash.
The quality giant stated that the price of the king's coin dropped "25 hours before" the Bitstamp sales order of 5000 BTC at low-low price of $ 6,200; Therefore, this is not a case of manipulation, rather an ordinary old market correction. Their May 17 tweet read:
"Today the price of #Bitcoin suddenly dropped more than 20%. Some say this was due to manipulation. #BTC had dropped for 25 hours before the big order hit #Bitstamp. This is not manipulation – it's a normal market correction. #crypto #cryptocurrency #altcoins "
No doubt that the Bitstamp order hit the market hard, given the gravity of the exchange and the order of the order, not to mention the consequences it had on BTC-BitMEX- market. However, the top crypto competition managed to hold over $ 7,000 and is now well over the $ 7,300 mark and moving up.
Whether it was a "jackass" -induced price manipulation or a periodic market correction, pullback seems to slow down with Kongemynt adding a 1.2 percent gain in price to the dollar over the last 24 hours.
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