Many factors have been blamed for the recent crypto market crash. The first culprit for the price dump was Donald Trump’s tweet against Bitcoin. Next, it was the Senate’s criticism of Libra, and now an Ether whale with almost 15,000 ETH buy order is the latest culprit.
The largest altcoin by market volume, which suffered a crash from $290 to $193 yesterday, is now trading at $223.36 at the time of writing, but this still does not solve the curiosity of how the price dropped dramatically within a few days.
Lots of fingers have pointed to a massive buy order of 15,000 ETH on Bitstamp which caused a sell-off of the ETH figures on BitMEX last Sunday.
Youtuber Chico Crypto pointed out a connection between the price dump on Twitter stating, “In case you didn’t know, the entire selloff yesterday was triggered by market manipulation. A market dump of 15,000 ETH on the illiquid Bitstamp exchange caused a sell-off on Bitmex and from there the rest of the markets via contagion.”
The crypto whale was sneaky enough to use Ether, the second-largest cryptocurrency in the market, and this forced bitcoin to move from $10,800 to $9,100, causing a massive 15% crash over three days. Speculations have it that Bitstamp is a more preferred exchange for the dump as it is one of three exchanges (in addition to Kraken and CoinbasePro) that set price data points for the future contracts on BitMEX.
Su Zhu, Co-founder and CEO of Three Arrow Capital, also noticed the crash caused by ETH. He noted the massive buy order on Bitstamp and also identified a buy order of 21,000 ETH at 0.2178 BTC by a whale on Binance. The buy order on Binance probably led to an ETH price surge from $199 to $221.
The outcry following the price fluctuations seems to be against the lack of regulation in the space. Bitstamp seems to an easy prey to price manipulations as it has relatively little liquidity.
At the time of writing, Bitcoin was trading above $10500, indicating an 8.48% comeback against the USD