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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?
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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?

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

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 Market Data

At the time of press 1:19 am UTC on Apr. 6, 2020, Bitcoin is ranked #1 by market cap and the price is up 4.46% over the past 24 hours. Bitcoin has a market capitalization of $87.43 billion with a 24-hour trading volume of $21.09 billion. Learn more about Bitcoin ›

Bitcoin

1:19 am UTC on Apr. 6, 2020

$4,961.56

4.46%
Crypto Market Summary

At the time of press 1:19 am UTC on Apr. 6, 2020, the total crypto market is valued at at $172.91 billion with a 24-hour volume of $78.09 billion. Bitcoin dominance is currently at 50.58%. Learn more about the crypto market ›

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