A large transaction was reported by Bitstamp earlier today, which the exchange said its system was able to contain. Things may be a bit bigger than they expected though, as $250 million was reportedly liquidated on BitMex. Bitstamp has, therefore, launched an investigation into the matter.
According to a report by The Block, the transaction led to the liquidity of $250 million on BitMex and prices have crashed on other exchanges as well. Although Bitstamp did not reveal details of the transaction, a Russian crypto news outlet Forklog reported that part of the transaction included the sale of 5,000 BTC at $6,200 which has been described as a mistake.
While the crypto community is on the matter and Bitstamp has launched an investigation, Weiss Ratings believes the transaction did not cause the current Bitcoin and altcoin dip. The firm says Bitcoin was already in a dip 25 hours before the transaction and so could not have possibly caused the dip or liquidation on BitMex.
Veteran trader Peter Brandt also previously stated that the bull market was moving too fast and a correction was likely for it to take a more gentle slope than in the move prior to this pullback.
CNBC Crypto Trader host Ran Neuner also said the market surge was too sudden and a dip may be the next step and later added that the dip was not unexpected. Analysts have actually described the dip as an opportunity to buy Bitcoin and the alts before the next move which they are convinced is imminent.
The current dip saw Bitcoin lose over 20% in the last 24 hours and things haven’t really changed since then. The altcoins which started surging when Bitcoin started the dip are also fully in the dip as well with the market in a bloody shape.
All top ten cryptocurrencies are red at the time of writing this article with Stellar (XLM) being the highest loser at -14% in the last 24 hours. Ethereum (ETH) which soared up to 15% yesterday is also down almost 12% at press time. It is not certain how long the dip will last or if it will get worse, but this could be an opportunity to join the bull train.
