The abrupt decline in the price of Bitcoin was triggered by the placement of a large sell order on Bitstamp and other major crypto exchanges, which triggered contracts on margin trading platforms like BitMEX to become liquidated.
Most crypto assets like ethereum are still up more than 70 percent year-to-date (source: OnChainFX)
Stop run on stamp to trigger Bitmex liquidations. pic.twitter.com/RBmtjr88mT
— Light (@LightCrypto) May 17, 2019
“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.”
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? 🤣
— Eric Conner (@econoar) May 17, 2019
Conner suggested that the manipulation of the crypto market, possibly by a single whale, may hurt the chances of an exchange-traded fund (ETF) approval in the near-term.
Bitcoin’s bullish momentum disrupted?
Still, in the past seven days, the price of Bitcoin has surged from around $6200 to $8300,