The collapse in the cryptocurrency market could be the result of an error. According to preliminary data, the sale of 5,000 bitcoins on the Bitstamp exchange at a lower price led to a sharp fall in the cryptocurrency market. The BTC / USD pair dropped to $ 7,260, within half an hour. The site begins an internal investigation, and there is a chance of attracting US and EU regulatory bodies to it.
On the night of May 17, one of the traders of the Bitstamp exchange put up for sale 5,000 bitcoins at a price of $ 6,200. If we consider that at this moment the price of cryptocurrencies on global markets was approaching $ 8,000, such a large sale led to a price drop. At the moment, it reached a level of $ 6178, but very quickly recovered to $ 6310. Such actions led to the fact that the BitMEX platform reflected a significant fluctuation that led to a massive closing of positions.
BitMEX is a global derivatives trading platform. Belongs to Global Trading Limited. 50% of the price of Bitmex cryptocurrency is tied to their Bitstamp value.
Some experts say that such a large sale of cryptocurrency at Bitstamp caused an error. Perhaps, instead of taking profits at $ 8,200, the trader sold the asset at $ 6,200, thus losing $ 10 million. However, there are those who see the direct market manipulation in the incident. Lost funds investors threaten to go to court.
The cryptocurrency exchange launched an investigation into the incident. However, regardless of its outcome, this case will have serious consequences. At a minimum, this will force regulators to tighten their attitude to cryptocurrencies. It is worth recalling that the rise in Bitcoin price in April was launched after a one-time purchase of 21,000 coins. Now Central Banks have another reason for alertness.
The US Securities Commission does not allow trading in Bitcoin-ETF contracts. Among the reasons for the ban authorities call a high probability of market manipulation.
At the same time, the cryptocurrency market rather calmly reacted to the incident. After several days of trading at low levels, the price returned to the value of $ 8000 for the BTC / USD pair. That is, the global uptrend was continued, and this incident did not have a very serious impact.
Bitstamp cryptocurrency exchange is registered in Luxembourg. Initially it was based in Slovenia, from there it moved to Britain. But only the Luxembourg license of a financial organization allowed it to operate in the territory of 28 European countries. Just a month ago, it was reported that the exchange was able to obtain a license to work in the city of New York.
The loudest scandal around Bitstamp occurred in 2015. Then the hackers were able to steal from the accounts of more than 19,000 bitcoins.
It is unlikely that the marketplace will receive significant damage from this incident. Applications for the sale of Bitcoin came from a third-party trader, and there is no platform fault. However, this case makes you think again about hedging when trading cryptocurrencies. So far, this is the only asset that can collapse in three days by 20% and then return to the previous level.