A single $50m sale of Bitcoin looks like it was behind a sudden drop in the price of the cryptocurrency…
You don’t need us to tell you that the price of Bitcoin has been on the volatile side these past few months. As we charted here, last week in particular was a particularly crazy week for the highest profile cryptocurrency. To give a flavour of just how much it’s still bouncing around, it emerged yesterday that a drop in price of some $200 could have been caused by one single investor dispensing of a large quantity of coins.
For it’s been revealed that one user dropped 6500 Bitcoin yesterday, when the price of BTC was sitting at $8146.70. That amounted to a value of just over US $50m, and just 24 hours earlier, another wallet sold 6600 Bitcoin. Between them, these two users sold some $100m of currency within a day. As seemingly a consequence of the second big sale in as many days, the value of Bitcoin fell by $200 very quickly.
Here’s the BTC index from April 17th to demonstrate just how swift the price drop was. Note the volume line at the bottom as well as the main value one at the top.
It’s not the first time that single user selling has caused fluctuation in the price of Bitcoin, and we suspect it won’t be the last.
At the time of first writing this piece, the price of BTC hadn’t climbed back to the level it was at before the sudden fall. But in the hour since this story went live, the price has now rebounded, and volume is back up…
Count this one as a blip, but a notable one.