Bitcoin, Crypto currency, Blockchain

Bitstamp launches investigation into Bitcoin sell order, which triggered the Crash

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Bitstamp launches investigation into Bitcoin sell order, which triggered the Crash

Home News Bitstamp conducts a preliminary investigation about Bitcoin-sell order, which the Crash triggered

Of
Marcus Misiak –
18.05.2019

The Luxembourg-based crypto-exchange Bitstamp has to initiate an investigation on the massive Bitcoin sell order that triggered the crypto-currency Crash on Friday.

As we reported, there was on Friday morning, a massive sell order at Bitstamp, which, as has been rumored, by a group of traders with seat in Asia was initiated, and the, the crypto-currency has consistently let it crash. Bitstamp would like to examine this event in detail and has reported the following:

Today, a large sell order for our BTC/USD has been executed Couple of, which impacted heavily on the order book. Our System behaved as if it was designed to the order of the customer in its receipt, and the met would have to be processed. […] We examine each event, that leads to large movements in our order book and have launched an immediate case investigation.

The sell order caused the price of BTC on Bitstamp in a sudden downward spiral, and the price of Bitcoin from around 7,800 USD fell up to 6.250 USD in about 20 minutes. This event triggered the Liquidation of a large number of Long positions to Leverage the stock exchange BitMEX, which calculates your Bitcoin Index from the average price of Bitstamp and Coinbase Pro. Thus, the data from Bitstamp in the BitMEX price index, which eventually led to a massive Liquidation that triggered finally, the Crash-flow to 50%. As the liquidation was carried out on the BitMEX-stock market, dropped the price of BTC on all crypto-currency exchanges worldwide.

Bitstamp has not confirmed the exact amount of the Trades, but the founding partner of the Venture Capital and Private Equity company Primitive Ventures, Dovey Wan, estimates that the large order of 5,000 BTC. In a Tweet, Wan explained what might be happening:

Back to normality

After the first decline on Friday morning Bitcoin had recovered after a further 20 minutes and was again significantly above $ 7,000. BTC finally rising to 7,300 USD settled there. Currently, the BTC price is 7.359 USD recorded a slight increase of 0.23% over the past 24 hours.

Numerous other large Cryptocurrencies to write, however, currently more in the red: ETH (-1,1%), XRP (-1,9%), BCH (-2.1%), and EOS (-1,0%).

However, there are also first Altcoins which show bullish: NBB (+4,0%), XLM (+5,1%), TRX (+3.3%) and IOTA (+2,7%)

Featured Iamage: Dedmityay | Shutterstock

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