In the wake of this morning, the world was met with the sudden news of Bitcoin’s dismal performance in the cryptocurrency market. Up to the time of writing, there is no apparent cause to explain why the crypto market dived. But some quarters argue that there is a clear connection of some 25,000 BTC that is worth 200 million US dollars being deposited in Coinbase right before the price dip, and about the same amount being transferred after the massacre.
It is not clear, and it is too early to speculate that the Bitcoin movement is related to the price plunge, but the timing seems suspicious.
The number one cryptocurrency which has been fluctuation wildly over recent days has collapsed under 8,000 US dollars. The current price drop records a sudden loss of about 1,000 US dollars per Bitcoin in a matter of minutes in the past few hours.
At 23:00 UTC yesterday, the most influential digital currency by market capitalization began to fall sharply, sustaining over a 700 US dollar loss in price value on the back of a substantial transaction volume leading to the crypto market sudden change in color at the beginning of the Asian session today morning.
Bitcoin with the inclusion of all other significant altcoins with a notable exception of Cosmos are buried in the red recording value depreciation of about 3 percent to 12 percent on a day-on-day basis. The entire cryptocurrency market has lost over 20 billion US dollars in a matter of hours as the total market cap of all cryptocurrencies in circulation has recorded a drop of about 250 billion US dollars from Monday’s figure of about 270 billion US dollars. Despite the bad news, the crypto market has witnessed an increase in the daily trading volume to about 81 billion US dollars.
For quite a few days now, Bitcoin has disappointed to close the gap and rise above the 8,800 US dollar level leading to the reexamination of prior support levels as BTC struggles to pick up a bid.
Despite the price plunge, Bitcoin prices are still up around double the value of where it began the year after a disappointing 2018 that saw a majority of the world’s most significant virtual currencies including Bitcoin losing around 80 percent of the market value.
What could have Been the Reason Behind Bitcoin’s Price Fall?
Although it is still unclear as to what contributed to Bitcoin’s sudden price fall today, some investors and pundits are pointing an accusing finger to the manipulation tactics of whales holding large amounts of Bitcoin. It is believed that there are whales or investors in the crypto market, holding Bitcoins that are worth hundreds of millions of US dollars.
These investors and pundits that are coming with this speculation are basing their arguments on the fact that a significant investor transferred some 25,000 BTC worth 215 million US dollars to San Francisco based Coinbase cryptocurrency exchange.
About an hour after the deposit, 14,000 BTC worth 112 million US dollars was moved from Coinbase exchange to another wallet followed shortly by another transfer of 11,000 BTC worth 88 million US dollars.
One Reddit user who goes by the name ‘makoveli‘ in the popular virtual currency forum r/cryptocurrency wrote,
“If you do your little calculations and follow the timeline, it will not be hard for you to see that someone deposited 25,000 BTC worth 215 million US dollars in the market and shortly bought them back at a profit of 15 million US dollars.”
In doing so, the whale pocketed 15 million US dollars in profit strolling away with the same amount of Bitcoin they had initially.
While this might be true, some crypto pundits are dismissing the claim of manipulation citing that the volume of BTC-USD pair on Coinbase cryptocurrency exchange was estimated to be less than 215 million US dollars.
Regardless of the cause of the price plundering, a majority of traders and investors hope Bitcoin will be able to replicate past pullbacks to redeem not only itself but the entire cryptocurrency market. At the press time, BTC trades at $7975.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.