Was the recent Bitcoin (BTC) slump triggered by an Ethereum (ETH) whale?

Was the recent Bitcoin (BTC) slump triggered by an Ethereum (ETH) whale?

Was the recent Bitcoin (BTC) slump triggered by an Ethereum (ETH) whale?

Was the recent Bitcoin price and crypto market slump triggered by an Ethereum Whale? It seems that the crypto community now found their answers. In addition to the negative news flow from the political world towards Bitcoin and Libra, a crypto whale seems to have been the reason for the slump.

Bitcoin price collapse triggered by Ethereum Whale?

Once again, the crypto community is looking for answers for the recent Bitcoin crash. While much of the crypto media jumps on the negative news from politics and sees the root of the recent crash here, the crypto community does not seem to be really happy with this explanation. And rightly so, considering that negative news are not really a surprise since Bitcoin and Libra have been a target of politics and regulators ever since.

The crypto community now found out that once again a whale has been responsible for the recent Bitcoin and altcoin slump. An Ethereum whale provided a massive sell order of 15,000 ETH for movements on Bitstamp and the ETH futures on BitMEX last Sunday. The Youtuber Chico Crypto is said to have revealed this connection before it was made public on Twitter.

Chico Crypto details in his YouTube Channel that the massive sell order of 15,000 ETH mentioned above has led to a slump in ETH from $ 270 to $ 190. A real flash crash on Bitstamp that has not happened for the first time. In this case, however, triggered by an Ethereum whale and not a Bitcoin whale.

Why Bitstamp is used again and again for manipulation by whales

Many users who regularly track the Bitcoin whale alarm might have noticed that this is not the first time that a narket dump has been triggered by a whale. This time, the whales where probably a bit sneakier and have used the number 2 of all crypto currencies (Ethereum) for their dump.

The reason why Bitstamp is always the favored exchange for a whale dump is obvious: Bitstamp is one of 3 exchanges, which serve as price data points for the future contracts on BitMEX. In addition to Bitstamp, Kraken and CoinbasePro are the other two exchanges that set the prices for the BitMEX Futures. However, all 3 exchanges have relatively little liquidity, which makes them very vulnerable to such price manipulation.

The Bitcoin price and market collapse and the impact of Bitcoin or crypto whales – A conclusion

The massive sell order of 15,000 ETH on Bitstamp then released a cascade that led to massive future liquidations on BitMEX and ultimately resulted in the crash of Bitcoin and the entire crypto market.  The following negative comments on Bitcoin and Libra from politics and regulators or major players where probably the second factor which led to panic sales.

But once again it shows that not negative news are the reason for price movements. They are – at most – a catalyst. Once again the bitcoin and crypto whales made the dump and are the ones who are responsible for the beginning of the slump. The whales still have a tremendous influence on the crypto prices, which is mainly due to the low trading volumes on these exchanges.

 

About Shawn Morrison 266 Articles
One of the founders of BitzArena. Active with crypto currency since the rise of the bitcoin. Loves the innovative character of crypto and blockchain technology, and follows developments in the market closely. Likes to connect technology with business, and likes to make difficult concepts accessible to a wide audience.

Be the first to comment

Leave a Reply

Your email address will not be published.


*