A Million-Dollar Purchase Triggered Bitcoin Price and Bots May Be Responsible

Iván López, an expert in economics, technology, and Blockchain, reports the impact of false information on the price of Bitcoin

Undoubtedly, the news that struck the cryptocurrency environment was a rise in the price of Bitcoin that was 20% above the previous day. Many wondered what may have caused it, to which Reuters said that it may have resulted from a single Bitcoin purchase for more that US $100 million.

After surpassing the mark of US $4,000 some weeks ago and gradually rising above US $4,100 in recent days, BTC’s jump to almost US $5,000 was not completely unexpected, but it definitely occurred faster than estimated.

The greatest and most original cryptocurrency soared in operations in Asia, surpassing US $5,000 for the first time since last mid-November. Late this morning, it had been established at about US $4,700, still 15% of its biggest one-day gain since April last year.

Oliver von Landsberg-Sadie, Director of a cryptocurrency brokerage firm, told Reuters that the move was probably due to a single buyer, who used a computer algorithm to activate a purchase of 20,000 bitcoins for US $100 million, in several exchanges such as Coinbase, Kraken, and Bitstamp.

Oliver von Landsberg-Sadie, CEO of the BCB Group cryptocurrency firm, told Reuters:

“At this time, the identity of the big buyer (probably an institutional investor) and the intent of the business are not clear.”

“Only one order has been administered algorithmically at these three places, which was of about 20,000 BTC.”

Regarding the reason why these three exchanges are suspected to be the origin of the mysterious order, the chief official said that “the volumes of each exchange were synchronized volume units of about 7,000 BTC per hour.”

The analyst could not indicate specific news or developments in the cryptocurrency sector that could explain the mysterious buyer’s big order.

A very probable, but not very crazy theory has emerged within this enthusiastic environment. Yesterday there was a lot of false news all over the Net as a joke to celebrate April Fools’ Day. A false article said that the “SEC finally approved two Bitcoin exchange-traded funds (ETF) proposals” and an analyst predicted that this might be among the reasons why the price of Bitcoin immediately soared on April 1st.

Currently, advanced algorithms allow creating even false news and bots with algorithms have developed to the point of responding to fundamental news. For example, those robots create automatized accounts that may spread erroneous information and distort regular conversations that occur online.

George McDonough, CEO of London-based investment company KR1, thinks that this joke might be the reason. He recently revealed that the purchase bots vanished after the false news that the SEC had allowed two Bitcoin ETFs on April 1st.

Jay Clayton, President of the SEC, called the commissioners to end EFT speculation. Supposedly, VanEck and Bitwise were preparing to launch their respective ETF in early May.

In a certain way, the article predicted that the SEC’s announcement would make the price soar to US $6,000. Actually, the price of Bitcoin reached US $5,000, increasing almost 20% per day, and this is not an April Fools’ Day joke.

The reasons behind this may not be clear, but Binance and other exchanges have benefited from this Bitcoin transference. According to CoinNess, not less than 100,000 BTC have been moved in one of Binance’s addresses.

By Willmen Blanco

The post A Million-Dollar Purchase Triggered Bitcoin Price and Bots May Be Responsible appeared first on CWJ | Crypto World Journal | Blockchain Nation - Building Better Blockchain Community.