During this year, as crypto enthusiasts, we have been pretty much aware of how the market is performing regarding prices. In fact, we have already seen many of the cryptos in the market fluctuate in a very particular way, which mostly has been a downtrend pattern with a few bullish flashes now and then.
It is because of this pattern that whenever a coin manages to obtain an outstanding growth, it results unfamiliar, in a manner of speaking, and that is exactly the latest interpretation of the 7 percent increase that Bitcoin (BTC) managed to obtain in the last seven days.
But many are arguing that the recent increase in Bitcoin price has been caused by a crypto exchange. What? Can an exchange ‘actually’ manipulate the price of a cryptocurrency, and above all, the king, Bitcoin itself? Well, there seems to be one that can. There are reasons to believe so, which of course, might not be true as there are some ‘good hints’ we can talk about.
Concerning to this, plenty of analysts of the market have already spoken on the subject, and as it appears, there is high chance that the famous exchange BitMEX may have orchestrated the increase in the prices of Bitcoin.
The main reasoning behind this assumption is that BitMex planned to make maintenance to its platform in a definite date, a fact that allegedly affected the demand and supply and therefore shoot the price of the token to the mark of above $6,700 after staying below that for a decent period of time. Let’s see all the details on the event.
A countertrade suggested the increase of BTC
On August 21st the official account of CNBC Future Now published a Tweet that read:
“#Bitcoin stuck below $6,500, and @AnthonyGriz is betting on more pain to come”.
In lights of the Tweet many of the investors and enthusiasts decided the best option was to cancel their shorts, but on the other hand, there were others who were practically expecting this to happen and so they were prepared.
The reason behind this action was centered on the fact that BitMEX announced a scheduled maintenance that was going to be deployed on August 21st. The support lasted 1 hour, and during that time a bunch of transactions was frozen because BitMEX is responsible for almost 40 percent of the total transactions with Bitcoin.
As a matter of fact, the spike of the price of Bitcoin started parallel to the maintenance, which is the main reason after comments such as the CEO of Bitwise, Hunter Horsley, who stated that during the hour of support all of the conditions were given to have a short-term trade, it’s simple, he said
“Buy when maintenance starts. Sell when ends.”
The recent events give us a clear image of the importance of BitMEX in the crypto market. It can affect Bitcoin (BTC) directly, which always affects the rest on market (at least none of the altcoins has freed it up at full as yet).
As it seems, the exchange is robust enough to create a ripple effect in the crypto verse, and that takes us to conclude that how necessary the presence of different exchanges is to have significant stability in the market.
Regarding the case, the Youtube channel Bitraged uploaded a video in which it labels the action as a “market manipulation” and even says the event has all the characteristics of a textbook case.
For its part, the rest of the cryptos in the market remained steady with prices being completely stable. Only a coincidence? We don’t think so…
Image Courtesy of Pixabay.
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