This time, suspicions are directed towards influencing the market or even an attempt to manipulate the price in Asia.
The market of Crypto is the joy of the trader. It offers high fluctuations, fast results, while technical analysis works better than traditional stock exchanges. In addition, it is open 24 hours a day, 365 days a year. Not only does it have holidays or vacations, it has no sleep!
The fact that it never stops is both good and bad. The good thing is that it is consistent with the modern intense rhythm of life. It's like being a customer in a store that never closes. You shop any time you want, whatever area of the planet you're in, with the logic of online stores.
The bad news is it's humanly impossible for a trader to keep track. Maybe some important move can be noted when you're asleep. And we don't mean upright, in its metaphorical sense, but literally.
Especially for us Europeans, the problem is that usually **the significant fluctuations take place from late at night until dawn. **The hours we're in pajamas, tucked under the quilts, safe in the Land of dreams. It's not a coincidence. Very much of the volume of transactions takes place in Asia. In working hours, the Americans traders.
We had a case like this at 2:00 a.m. in Greece. Within 2 hours, from 8,500 dollars, Bitcoin plummeted to 7,700, losing almost 10% of its capitalisation. Now you're going to say, this isn't something so shocking. These things happen in the crypto market. Indeed they do happen, but this time the suspicions are directed at influencing the market or even attempting to manipulate the price of a "whale" (account that has many Bitcoin in its possession).
So what's so strange about the suspicion? Around half an hour before the retreat began, 25,000 Bitcoin (worth 215 million dollars) was sent to Coinbase's exchange to be sold. That caused concern. Those who got it, started to fear that so many pieces could be sold out, something bad is happening. So they started selling too, boosting the pressures.
From now on, it's getting even more interesting. An hour later, and while the price of Bitcoin had subsided almost 10%, the same "whale" moved the 14,000 Bitcoin to another e-wallet. Half an hour later, it prevented the remaining 11,000 Bitcoin.
**What's the meaning of this? As things show, someone sold their 25,000 Bitcoin, bought them again lower and then drop them! With this energy it is estimated to earn 10-15 million dollars. Not a bad performance for two hours ' work!
**
Is this legal? Of course it is. Someone decided to sell his Bitcoin and buy hosting with his bitcoin. It's not illegal to possess a large amount of cryptocurrencies. It's not illegal to want to sell them and buy them later, if you see it's in your best interest. This is also what all intraday traders are trying to do.
But is it ethical? Here the answer cannot be clear. We're starting to enter gray areas.
It is obvious that there are big players in the market of crypto. It is also obvious that they will want to exploit their power. It's not the only stock market where this is happening. Anyone who has read the book "Memories of a life in the stock market", containing the fictional biography of the legendary speculators Jesse Livermore, will recognize that such incidents are old as the stock market.
With the opportunity to mention that this book is an excellent life lesson for anyone wishing to take a serious look at stock investment. Livermore's advice is shockingly topical even today. Also, do check these domain registrars who accept bitcoin. You might find them useful in the near future.
How is it in the age of speed and information to help someone who in his time was communicating with the Telegraph? The answer has been given by Livermore himself ever since: Nothing is new on the stock exchanges. It cannot be, because speculation is as ancient as man. Everything that is happening today has already happened before and will happen again in the future.
The market today
When Bitcoin falls so sharply and so strongly, the rest of the market cannot remain unaffected. Indeed, if you exclude (again!) the Bitcoin SV, all cryptocurrencies have suffered losses.
*Photo by Lorenzo from Pexels