The massive Bitcoin sale, sent the end of August, the Bitcoin price is below the $10,000 mark, was not the result of manipulation, according to the latest study of Coin Metrics.
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Large-volume Bitcoin sales on Coinbase discovered
Large traders or institutional investors manipulate often the Bitcoin price, in particular through the fake volume, or trading derivatives. In the latter case, the trading on stock exchanges, such as BitMEX* or Chicago-based CME platform is carried out. These trading courses enable investors to acquire Bitcoin without owning them. Due to price manipulation of large volume of traders, the movement of derivatives may, however, ultimately in the Bitcoin price reflect.
However, this was not apparently the case, as the Bitcoin on 28. August went back suddenly. Coin Metrics found out that the first signs of a stronger trading activity on Coinbase during a 20-second window held at 17:54 UTC. The price at that time amounted to 10.240 $ and it was followed by three large sales with a total of 72 Bitcoin to the value of 740,000 $.
There was no preceding fundamentals that would support a bear, so that the sell orders were unusual. On other exchanges, there is no similar increase in the volume of trade was recorded.
The sell orders on Coinbase could have triggered the massive sell-out, but there are no signs of market manipulation. A plausible reason for the declining Trend is, rather, that the sales at Coinbase* have triggered a reaction of trading algorithms, Market Maker.
Coinbase monitors of Bitmex, and CME
The sell orders on Coinbase could also, therefore, have a snow ball effect, because the US-based crypto-exchange is part of the CME CF the Bitcoin Reference Rate and the BitMEX Bitcoin price index. Thus, the Futures trading platforms keep track of the crypto-exchange-Coinbase is very accurate, and there is the possibility that their Algorithms have reacted to the sales.
Interestingly, responded to the smaller systems such as Bitcoin Cash, Ethereum, EOS and Litecoin first on the sales orders and showed sudden losses. However, they were not the catalyst for the short-term downward trend of Bitcoin, so Coin Metrics in conclusion.
Also of value: Bitcoin exchange rate floor at $100,000 by the year 2028
Text evidence: bitcoinis, ANATOL ANTONOVICI