Traders Rule: Bitcoin Tanks as Large Sell Order on Bitstamp is Investigated

Bitcoin has reversed its recent bull run to a new 12 month high of around USD $8000 to now hovering just above USD $7000.

The gut churning reversal is being blamed by some as being caused by a huge sell order accepted and executed on Europe-based crypto exchange Bitstamp.

According to Bitstamp, a large BTC sell order was received which “strongly impacted” their order book. Due to the size of the order, Bitstamp says has started an investigation.

Of course, all of this rapid Bitcoin movement is causing a lot of speculation in the BTC realm as to what exactly is the true cause of the drop.

The bigger question, perhaps, is when will crypto exchanges get together and self-regulate themselves to create a more orderly trading environment? Does anyone out there remember the flash crash? How about some circuit breakers to cool algo driven trading – of which there is a good amount of in the BTC/crypto sector.

In the end, an asset like Bitcoin should be expected to experience rapid changes in prices as exogenous variables that influence the cryptocurrency are many. Then there is that nagging question as to whether or not Bitcoin is just a tool for some traders to manipulate. Either way, traders can make money.

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