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Did a 20,000 BTC order push bitcoin’s price to $5000?

Did a 20,000 BTC order push bitcoin’s price to $5000?

Yesterday, bitcoin’s price hit 5-month highs over the course of an hour—surging from $4,200 to $5,000. Was a 20,000 BTC order, worth approximately $100 million, the catalyst that triggered bitcoin’s breakout?

Bitcoin’s Sudden Price Jump

Yesterday at 21:30 PT, bitcoin suddenly accelerated from $4,200 to $5,000 within 50 minutes. The sudden jump in price was unexplainable at the time, even to those who closely follow the bitcoin markets:

Source: Bittrex

Even experienced traders were surprised by the speed and magnitude of the price change:

The sudden increase in price also triggered a round of short-squeezes. Those shorting bitcoin on BitMEX and other derivative-enabled exchanges were rapidly liquidated, pushing the price of BTC even higher and aiding it in hitting $5,200 on some exchanges.

Estimates of the short liquidations on BitMEX, the largest cryptocurrency derivatives exchange by volume, are reported between $410 million and $500 million according to secondary sources.

Did a Massive Trade Trigger the Breakout?

Within the last eight hours, an article by Reuters suggests that a $100 million buy order spread across Coinbase, Kraken, and Bitstamp was the catalyst to BTC’s breakout. Reports from CNBC support this narrative.

According to Oliver von Landsberg-Sadie—chief executive of BCB group, a prime broker and OTC desk for institutional clients—the trade was algorithmically-executed across the three exchanges mentioned above.

“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.”

Yet, even if the catalyst was a large buy order, it seems that tangible trading volume has followed.

Source: data.bitcoinity

It seems for the time being that the price of BTC is salient, with the price per coin remaining above $4,600. And, at the time of writing, it seems that the markets are once again testing $5,000 resistance levels.

Bitcoin | BTC

Updated: Apr 3 at 3:41 am PDT
$4,961.56
4.46%

Bitcoin, currently ranked #1 by market cap, is up 4.46% over the past 24 hours. BTC has a market cap of $87.43B with a 24 hour volume of $21.09B.

Chart by CryptoCompare

Bitcoin is up 4.46% over the past 24 hours.

Posted In: Bitcoin, Price Analysis, Price Watch, Trading

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Mitchell Moos

Mitchell is a software enthusiast and entrepreneur. His first startup built algorithms for optimizing cryptocurrency mining. Prior to CryptoSlate, Mitchell was a project manager at a firm that built distributed software on Hyperledger. In his spare time he loves playing chess and hiking.

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