fxs_header_sponsor_anchor

Crypto market update: How a 20,000 BTC buy order sent Bitcoin price to new 2019 highs

  • Bitcoin $100 million worth buy order spread across three exchanges likely to have catalyzed yesterday’s surge.
  • Bitcoin $20 billion trading volume hints further upside correction if technical levels remain unchanged.

Report across the crypto sphere claim that yesterday surge that sent Bitcoin to trade a 5-month high could have been caused by a 20,000 BTC order worth about $100 million. This order is believed to have been the catalyst to the sudden surge.

As discussed in our reporting yesterday, the reason behind the surge was unknown. However, like many analysts and experts on the market, we linked the surge to Bitcoin breaking above the critical $4,200 couple with some emotion of excitement from the part of traders. Besides, the crypto market is a young market, roughly 10 years old and, therefore, a sudden surge in a certain direction is likely to trigger a further correction.

According to Reuters an order worth $100 million that was spread across several exchanges including Kraken, Coinbase and Bitstamp was the force behind the surge in Bitcoin price. Moreover, a report from CNBC agrees with this suggestion. The CEO of BCB group an OTC trading desk catering for institutional clients, Oliver von Landsberg-Sadie:

“There has been a single order that has been algorithmically-managed across these three venues, of around 20,000 BTC. If you look at the volumes on each of those three exchanges—they were in-concert, synchronized, units of volume of around 7,000 BTC in an hour.”

However, it is not clear how a large buy order could have triggered such a surge unless it was supported by high trading volumes. And the high trading volume is the one parameter that is keeping Bitcoin above $4,900 and trending closer to $5,000 at the time of press.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.