FAST FIVE: Bitcoin Hits 1 Year High Then Plummets After "Someone" Liquidates $1 Billion In Seconds To Hammer Price
Bitcoin Hits 1 Year High Then Plummets After “Someone” Liquidates $1 Billion In Seconds To Hammer Price Tyler Durden Sun, 08/02/2020 – 10:37 The infamous cryptocurrency dash-and-smash was on full display overnight, when shortly after midnight ET, bitcoin hit a one year high of $12,112 – rising 20% in just the past week when it hit $10,000 on July 27.
First, the volume in the cryptocurrency market tends to drop during weekends.
Bitcoin declined from $12,000 to $10,600 within 15 minutes, while ether declined from $417 to $300.
Needless to say, such a furious selloff is not in the best interest of the seller, who would be much better served with a measured selling strategy instead of taking out the entire bidstack in one transaction, a move which traditionally has been linked with price manipulation (a la “banging the close”) and repricing a security to a far lower level.
Tonight's mass liquidation was strikingly similar to comparable moves observed in the past five months, most notably, on the so-called “Black Thursday” on March 13, when $1 billion worth of liquidations occurred.