Bitcoin’s rally had everyone surprised but also pushed all the bulls out of the closet. The rally was a sharp parabolic rise and too good to be true, hence a lot of the traders waited for a healthy correction. Bitcoin dropped by more than $1,500 in less than 2 hours.
The correction phase, at the time of writing, was still underway and the prices have dipped as low as $6,192. The market cap of Bitcoin, as seen on CoinMarketCap was at $128 billion.
A Twitter @Bitfinex’ed, and a critique of Bitfinex, pointed out how the Bitfinex premium rose as the price of Bitcoin collapsed.
Well look at that Bitfinex premium! pic.twitter.com/nWedMnPpjZ
— Bitfinex’ed (@Bitfinexed) May 17, 2019
Bitcoin was recovering from the sudden dump, however, the extent of the dip in the price of Bitcoin varied on different exchanges. On Coinbase, the price dipped as low as $6,600, on Bitfinex, it dipped to $6,990. The drop was perhaps the most on Bitstamp exchange as it dipped at $6,178.
The shorts took control of Bitcoin, leading to a crash in the price. At press time, as seen from the charts, the shorts continued to gain more momentum, which could indicate the upcoming move in Bitcoin.
Moreover, the liquidation of longs due to this massive dip on BitMEX reached a total of 104 million contracts, which, in total, were worth $207 million.
The dip in the prices could be attributed to the New York Supreme Court’s order to freeze further transfers to Bitfinex from Tether. This decision by the court was due to the original injunction filed by NYAG being vague, over-board and not time limited. Moreover, the New York Supreme Court’s order was viewed by Bitfinex as a win which was expressed by the exchange in their recent blog, which stated:
“This order is a victory in the ongoing defence of our business against the New York Attorney General’s office.”
However, the court’s motion also acknowledged the petitioner’s concern i..e, the massive loan given to Bitfinex by Tether. The new motion granted by the NY supreme court judge stated:
“… the Court finds that Petitioner has made a sufficient showing to warrant a targeted preliminary injunction preventing Respondents from continuing to let dollars flow out of Tether’s reserves via the type of extraordinary transaction that triggered Petitioner’sconcern.”
Crypto Twitter started finding reasons for this dumps as a user @loomdart tweeted:
Someone crazy is pushing down bitstamp with a 2k btc sellwall… wow O_O pic.twitter.com/zpTC6wb7dY
— Crypto Loomdart (@loomdart) May 17, 2019
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Justin Sun on shaking down the Internet, Coin Metrics on Kin’s blockchain activity and more
Crypto News – 26 June – Justin Sun on shaking down the Internet, Coin Metrics on Kin’s blockchain activity and more
— AMBCrypto (@CryptoAmb) June 26, 2019
Crypto News – 26 June
Bitcoin breaches new resistances: In a sensational run that saw the coin surge by 15% over 24 hours, the world’s largest cryptocurrency breached the $12,000 mark, while also briefly touching the $13,000 mark, before falling again
Read more at https://bit.ly/2ZMkS10
Tone Vays on Bitcoin’s biggest strength: Tone Vays opined that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention
Read more at https://bit.ly/2RD2BjL
Tron Foundation launches new inititative: Justin Sun’s Tron Foundation announced a $20 million TRX buy-back plan to promote community activity and market stability
Read more at https://bit.ly/2X8aA9W
Joe Kernen on Bitcoin, Libra: The once crypto-skeptic, CNBC Squawk Box’s Joe Kernen is of the opinion that Libra is for corporations, while Bitcoin is for the people
Read more at https://bit.ly/31MkqSa
Bloomberg on JPM Coin: According to a report by Bloomberg, the Jaime Dimon-led institution plans to launch the JPM coin and use it for bond transactions
Read more at https://bit.ly/2X75DTr
Fundstrat report on stablecoins: According to a recent report by New York-based Fundstrat Global Advisors, the FS CryptoFX Stablecoin index fell by a whopping 21 percent against BTC, with Gemini outperforming Tether [USDT]
Read more at https://bit.ly/2X5qPJw
BitGo’s latest collaboration: Bitcoin IRA has announced that it will be teaming up with BitGo to launch crypto-retirement accounts insured for $100 million
Read more at https://bit.ly/31UvjBz
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