The Bitcoin exchange rate is burgled yesterday afternoon from about 8,000 USD to 7,500 USD, and has put many investors in a panic. It is the question as to the possible reasons noted for the sudden BTC price Crash. As always, there are already various theories on what could have caused the Bitcoin price slump. The search for the possible reasons in different directions. The hearing of Mark Zuckerberg, CEO of Facebook, regarding the Libra in front of the US Congress is often to be found as a possible reason. Another possible reason for the quantum computer by Google, has already catered a few weeks ago for a bit of panic in the crypto world and of ourselves was invalidated is. The most relevant reason for the Bitcoin price collapse, however, is a possible Manipulation by BitMEX and Bitstamp.In our latest Video on Youtube, you’ll find more information about the Bitcoin price Flash Crash and all other relevant News from this week. Mirco has summarized for you the most important information short and crisp.
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Bitcoin exchange rate Manipulation by BitMEX?
Again and again, the Bitcoin Futures exchange BitMEX is accused, after a strong BTC price collapse, Manipulation. BitMEX is currently the largest crypto-exchange, the daily trading volume of BTC. This Trader on BitMEX with Levers (up to 100x) can be set to falling and rising rates. Although the potential Manipulation of the Futures exchange is known for a long time but most do not seem to bother really. In addition, there is no solid evidence that BitMEX manipulated the Bitcoin price actually.But again, indications are that confirm exactly this assumption and this Time it was different. BitMEX is related to the underlying Bitcoin rate of three different stock exchanges: Coinbase, Kraken, and Bitstamp. Thus, the shown price on the stock exchange is based on the basis of these Exchanges. Accordingly, only a Manipulation by BitMEX can take place if one of the three Exchanges, the Bitcoin price is affected.Trading crypto-currency CFDs, in the case of Skilling. Bitcoin and Crypto CFDs with competitive Spreads, transparent pricing, and ultra-fast order execution. Most Skilling today and see for yourself.Get started now!
3.600 Bitcoin on Bitstamp ensured that the BTC price slump
Yesterday, the BTC price drop was triggered apparently by a sell-off of 3,600 BTC on Bitstamp. However, it is also suspected that there might be an algorithm error of a Trading Bot. All the purchase have been triggered-the Order of 7,800 USD, down to 6,200 USD through the sale. In consequence of the strong decline in prices, have triggered many Stop Losses and have caused a negative Domino effect.
Huuuge #BTC long liquidation on Bitmex on that huge sell-off just now which is reportedly driven by a massive sale of 3600 BTC on @Bitstamp. Some reports this could have been an algo gone wrong! Every bid from $7800 to $6200 wiped out in less than 15 minutes. pic.twitter.com/jKQj0sFhii— taiwandan (@taiwandan) May 17, 2019
But the interesting thing is that the Bitcoin price on Coinbase and Kraken moving briefly, then, about 10-15 seconds later (according to the trading view), also to the South. After a few seconds the Bitcoin prices on the various stock exchanges, again the same. The reason for this is probably due to automated Trading Algorithms, which act according to specific, pre-defined settings on the various stock exchanges, and the resulting Arbitrage opportunity used.
BTC Open Interest has risen an hour before the break-in extremely
Much more interesting is what happened on BitMEX. Due to the sudden Bitcoin price drop Long were liquidated positions in the amount of 180 million USD. The Open Interest represents the total of all open positions in futures or option contract, was yesterday on a multi-month High of 110,000 BTC. The corresponded prior to the slump to a value of approximately USD 900 million. The only funny thing about the story is that the Open Interest rise only one hour before the BTC price Crash extremely.Source: https://bitmexresources.com/Die suggests, therefore, that BitMEX did not want to liquidate existing Long positions, but Short positions in the run-up has built up. Currently there is only a possible theory, since there is no concrete evidence for this type of Manipulation. Similarly, the role of Bitstamp in this possible Manipulation is unclear. Nevertheless, the listed indicators are not neglected easy to use and should give to think.Far away from the possible Bitcoin price Manipulation by BitMEX, it could hold a normal correction. We have already listed in our Bitcoin price chart analysis from Tuesday, that the probability for a BTC price decline is higher than for an increase. In addition, the trade has decreased in volume in recent weeks and the share price is facing a possible Death Cross, which would be a very lot of bids due soon scenario. In addition, the interest in Bitcoin and crypto currencies in General in the last few weeks has greatly decreased.You have to read everything and want to still not miss anything? Then sign up now for our weekly Newsletter and be always Up-to-date. Get easy access to all relevant News about Bitcoin & Crypto, Blockchain, Meetups, and news within our Community by E-Mail – summarized and clear. Subscribe to the Newsletter now.Has been triggered, the Bitcoin exchange rate Crash due to a Manipulation of BitMEX? Come in to our Telegram Chat and talk with the experts and the Community. Subscribe to our News channel to not miss any News. (Image Source: Shutterstock)