Slump in Bitcoin's Price Caused by a Massive Whale Sell-Off on Huobi

Zain  |  Apr 11, 2020

A sell-off of 1,000 BTC on Huobi Global on April 10, could have played a part in bitcoin's fall price below $7,000, according to CoinMetrics data.  The report suggests a fall of $250 in BTC price was preceded by an investor trying to sell 1,000 BTC.

The pair was trading between the $7,100 to $7,400  before falling below the $7,000 mark. The bizarre exit didn't raise many eyebrows of analysts and traders, who were anticipating that high levels would struggle to find the needed support for long.  A rebound is yet to appear.  Bitcoin last touched the $7,000 mark on Friday and is currently hovering at $6 879.

Questions Raised on Huobi

Arcane Research, has provided an interesting outlook while contemplating the data, and raised questions about Huobi involvement in this fall, stating it could be linked to the diabolical PlusToken Ponzi scheme. The massive sell-off by Plustoken which gathered large amounts in its operations created fake pressure on the BTC market.

It is not just bad actors which play their part in manipulating the price. In the previous year, a lone whale in order to win a bet against another whale, and to defend the BTC/USD price at a certain trading point, used a 'giant stash of cash'.

Glassnode report this week has brought to our attention that the bitcoin whales, ones holding atleast 1,000 BTC, is at an all-time high in the last two years. It could be having something to do with the upcoming Bitcoin halving. It is a common phenomenon before this highly anticipated event and this tendency to culminate BTC in the building up to BTC halving occurred in 2016 too. Since the whale usually knows a thing or two about bitcoin's halving and its impact on the price of bitcoin, the accumulation is surely pointing toward a positive upturn ion the price of bitcoin.

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