Bitcoin worth $ 10 million has just been transferred to cryptocurrency exchange Bitstamp from an unknown wallet address. Will BTC crash again?
Just two days after Bitcoin's biggest collapse in 10 months - dropping from around $ 7,200 to just under $ 5,500, a huge transaction occurred today.
As noted by the Twitter account Whale Alert, 2,000 BTC has been transferred from an anonymous address to cryptocurrency exchange Bitstamp.
🚨 2,000 #BTC (10,601,299 USD) transferred from unknown wallet to #Bitstamp
- Whale Alert (@whale_alert) March 14, 2020
Although the source of the money is not yet known, there are a few suspects potentially behind this massive transaction.
Question 1: Trader BitMEX
The first question is that the money could come from BitMEX traders. The sharp decline in prices caused many derivatives traders to be caught off guard and subsequently caused a series of reluctant liquidations on the BitMEX platform - worth approximately $ 700 million.
A liquidation occurs when BitMEX is forced to close Long contracts after the price drops according to a pre-set amount.
In recent weeks, many people have joined the Long positions on BitMEX - with the expectation that the market correction will be stable and recover after last week's incident.
In fact, the forced liquidation of Long contracts accounted for 90% of all derivatives contracts on Thursday.
A forced liquidation is likely to create fear and concern in many Bitcoin traders. This suggests that this huge transfer of Bitcoin could be another big dump, and it is obvious that the price of Bitcoin will continue to decline if it happens.
Question 2: The Plus Token scam?
It is possible that the fraudsters behind the Plus Token did not transfer the captured Bitcoin to their final points last week, and therefore, it is possible that the new major transaction to Bitstamp is from these guys.
However, it must be admitted that this conclusion is uncertain, as Bitstamp requires identity verification and such large sums of money are highly discoverable.
That would be a very unwise decision from a crook.
Is there another price cut to Bitcoin?
The current situation and the volatility in the market we are witnessing do not seem to bring positive confidence, which many people in the community believe will have another short-term price drop.
Whatever the reason, the fact that transferring such a large number of coins to an exchange is very worrying. Usually large amounts of money are transferred to an exchange only when they are ready to be traded. And no one seems to be able to make bullish trades at this time.
If 2,000 BTC is sold on the market, a dump with Bitcoin is unavoidable and can result in more sales orders on the order book.
Maybe you are interested:
Join our channel to stay up to date on the most useful news and knowledge at:
According to Bitcoinist
Translated by ToiYeuBitcoin
0 Comments