Trader complains about dirty game when Bitcoin price drop ends in the biggest daily recovery of all time


Bitcoin (BTC) had its most successful recovery in history on January 12, after testing the $ 30,000 support, but market participants are already suspicious.

Data from Cointelegraph Markets and TradingView followed Bitcoin, which quickly bounced back from $ 30,250 low on Monday night to seal 20% gains in just over 12 hours.

Guggenheim sells advice under scrutiny

Coming even faster than the previous weekend, the return marks Bitcoin’s best daily performance, both in U.S. dollars and in percentage terms. The figures will be confirmed as soon as the daily candle closes, at the time of publication the figure was at a local top of $ 36,600.

Once the recovery started, however, concerns arose about the authenticity of recent market movements.

The popular market analyst and contributor to Cointelegraph filbfilb argued that the strength of the bullish denied what was equivalent to market manipulation – thanks specifically to the exchange interruptions to the unofficial advice of asset manager Guggenheim to sell at lower prices.

“Amazing what is possible when you can bid in the market,” says part of a series of tweets.

“It’s hard not to be a conspiracy theorist when two major exchanges become inoperative and Guggenheim tells people to sell during the dive before the rebound.”

12-hour BTC / USD candlestick chart (Bitstamp) with recovery data. Source: filbfilb / TradingView

As reported by Cointelegraph, Guggenheim’s CIO, Scott Minerd, warned investors that it was “time to get some money off the table”. The company is awaiting U.S. regulatory permission to insert Bitcoin through the Grayscale Bitcoin Trust (GBTC), and Minerd’s words quickly generated criticism for having deliberately lowered the price in the meantime.

Exchange raise the heat

For major exchanges Coinbase and Kraken, meanwhile, the advertising headache continued. As Bitcoin’s fall accelerated from $ 38,000 to the lows, both trading platforms have now seen characteristic disruptions, causing traders to lose control of orders. The indirect effect, the statistician Willy Woo later warned, impacted the entire market and even worsened the price drop.

“Spot market liquidation started at around $ 38,000, so Coinbase partially failed to register purchases, causing its price to drop by $ 350 lower than others,” Explained him on Monday.

“Unlike the previous declines in the past 2 years, where markets had over-leveraged traders liquidating, this one started in spot markets, so it has been greatly amplified by a single exchange partially failing, but has not yet changed direction for the sake of the ecosystem. “

Woo also questioned why futures exchanges did not remove Coinbase from their lists to contain the consequences.

The customers seemed unconcerned. According observed by software developer and commentator Vijay Boyapati, Coinbase’s volumes were in excess of 101,200 BTC ($ 3.6 billion) in the 24 hours to the beginning of Tuesday, something he estimates has led to profits of up to $ 175 million.

“As much as I don’t like Coinbase, its IPO will be a great catalyst for the entire market when that happens,” he said in the accompanying comments.

“A lot of capital from the stock market will flow into the #Bitcoin market this way.”

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Thomas Miles

Cryptocurrency is the most recently discovered currency which will be likely at the help of modernization across the next few decades. With a limited control from the government, the crypto market is independent of many features of a sound market as we know it. Thomas brings these stories to us by weaving them into articles of general importance to all those looking at the fluctuations in the market, or new entries. Thomas is also the founder of Bulletin Bits and is an excellent leader. His leadership is the kind that makes him the most knowledgeable and experienced on the team. His wonderful work ethic and attitude are worthy of imitation!

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