An Ethereum whale is speculated to have caused a market crash on July 14, with a sell order of approximately 15,000 ETH pulling the price of Ethereum down from $290 to $190. This crash is understood to have bled over to Bitcoin, contributing to the king coin’s price slumping from $10,800 to $9,100, a massive 15% crash spread over 3 days.
Three Arrow Capital’s Co-founder and CEO, Su Zhu, tweeted,
Auto-liquidation w/ no-KYC vs margin call w/ KYC — some may start to re-evaluate Peer-to-Contract vs Peer-to-Broker. pic.twitter.com/Ek2j6fy0on
— Su Zhu 🦁 (@zhusu) July 15, 2019
Since BitMEX uses Bitstamp to derive the price of the perpetual contracts, there was a massive liquidation of longs worth $164 million.
Earlier today, Su Zhu pointed out a buy order of 21,000 ETH at 0.2178 BTC by a whale on Binance, possibly contributing to the price of ETH surging from $199 to $221. This surge has restored half of the valuation lost in yesterday’s crash. More often than not, the price of Bitcoin is a major factor in the movement of alts. However, in this instance, it looks like it was the other way around.
— Su Zhu 🦁 (@zhusu) July 18, 2019
Lack of Regulation
There were many who reacted badly to this tweet. Some suggested market manipulation, while others suggested it was spoofing. Be that as it may, Bitstamp seems to be getting tired of these fluctuations. These have happened more than once,