Bitcoin started 2024 like a rocket. It currently exceeds $63,000, but that doesn’t mean all sales will always be at that price. Bitcoin price is constantly changing and it is possible to see transactions where it is bought and sold at a price very different from the quote. What we see these days is that it is possible to buy Bitcoin for $8,900, even though it seems like a lie.
Bitcoin is up to seven times cheaper. At $8,900, we’re talking about seven times less than its price. How is it possible for Bitcoin to drop so much suddenly? Statement was made BitMEX, cryptocurrency derivatives exchange. They explain that “unusual activity” was detected in the Bitcoin market where a large number of large orders were placed.
A short accident. What happened was that Bitcoin sell orders snowballed. Suddenly, large amounts of Bitcoin began to be sold, as if there was a general panic. This caused the price to drop as if there was a crash. But this only lasted a few minutes. This is what is known as a “snap collision”. Some kind of false alarm.
Selling hundreds of Bitcoins at once. In those few minutes on Monday night, more than 400 BTC were sold in packs of 10 to 50 BTC. We are talking about $25 million when its normal value is around $60 thousand, but not all of them were sold at the current price because these sales accelerated its decline. With each operation, Bitcoin’s value dropped by approximately 40%.
As El Economista explains, the seller later made another shipment of 600 bitcoins, but in this case the price was already too low. The base was $8,900.
Image: Blockchain Daily
From the same account. According to Cointelegraph, this anomaly came from a single Bitcoin whale, as just reflected, users are known to hold large amounts of the cryptocurrency and have the ability to manipulate the market.
The reason for the sale is unknown, but it is estimated that the seller wants to get rid of his Bitcoin at all costs, regardless of its price.
Not impressed… “The sell orders were so close and large that third-party market makers and other independent traders were unable to react. The compliance team is investigating the relevant accounts and transactions that triggered this move in accordance with our standards,” they explain from BitMex.
A one-time crash, Bitcoin quickly rebounded to its normal price as buyers took advantage of it. It did not impact the derivatives market or cause a chain reaction with other positions. However, BitMex notes that the impact would be greater if the derivatives markets were connected.
…but this shows a reality of the Bitcoin market. If Bitcoin ETFs become popular, these specific Bitcoin-related events may become more relevant. Arthur HayesCo-founder of BitMex.
It has also been shown that a single whale managed to push the price of Bitcoin to a level that is far from its price. This is because more BTC is available for sale than is purchased. There just weren’t enough people who could buy Bitcoin so cheap right away. Logically, when the price dropped so much, those who paid attention immediately bought Bitcoin at these prices. And it quickly returned to the normal price.
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in Xataka | The Bitcoin landscape will change radically in 2024. And the price will start to reflect that
Source: Xataka
Jason Root is a blockchain enthusiast and author at Div Bracket. He provides comprehensive coverage of the latest developments in the world of blockchain, offering readers a unique perspective on the industry and its potential for revolutionizing various industries.