From the reason behind a big drop in the price of Bitcoin to some hard-hitting questions for the CEO of Ripple and the founder of ConsenSys, here’s a look at some of the stories breaking in the world of crypto.
A big Bitcoin reversal is underway, with BTC dropping 10.95% to $7,122 at time of publishing, according to Coin360. Altcoins are following, with Ethereum down 7.37% at $241.22 and XRP down 13.56% at $0.3844.
Michael Gu of the popular crypto YouTube channel Boxmining says he believes a single whale triggered the dump.
A massive amount of BTC was sold all at once on the crypto exchange Bitstamp and potentially a number of other major crypto exchanges at the same time, leading to a dramatic drop in the price of BTC in a matter of minutes.
“I actually got notified about this from my trader friends. So they were trading and they saw this actually as an arbitrage opportunity. Because the price of Bitcoin went down so fast to $6,200 [on Bitstamp], they were trying to figure a way out to buy Bitcoin on Bitstamp and arbitrage on other exchanges…
With everyone arbitraging, the price has dipped on all the exchanges as well. This really goes to show how much power whales and big sell orders have on the cryptocurrency markets.
As the price of Bitcoin fell across multiple exchanges, contracts on margin trading platforms such as BitMEX were liquidated in a domino effect, as the combined market cap of all cryptocurrencies dropped by about $30 billion.
Ethereum, Ripple and XRP
Ethereum co-founder and founder of ConsenSys Joseph Lubin went head-to-head with Ripple CEO Brad Garlinghouse in a lightning round of questions for CNBC.