Bitcoin Price Plunges 7% As Arkham Denies Responsibility For Mt. Gox Glitches

Key Points:

• Bitcoin price falls 7% in an hour due to false alert.
• Blockchain analytics firm Arkham Intelligence at fault.
• Investigation reveals alert sent accurately, not cause of price drop.

The price of Bitcoin recently experienced a significant drop of approximately 7% within just one hour, plummeting from $29,850 to $27,789.

The reason behind this sudden decrease, as reported by various media outlets, was due to an incorrectly sent alert by blockchain analytics company Arkham Intelligence. The alert claimed that wallets related to both Mt. Gox and the U.S. government were transferring large sums of Bitcoin.

Initially, Arkham responded to the situation by confirming that the mistake was caused by a bug fix which led to a false alert being sent out to a small group of users on their analytics platform. This confirmation was given through a tweet, which was subsequently shared by the popular crypto news alert account DB or Tier10k.

However, an hour after the initial tweet, Arkham published a follow-up message contradicting its previous statement. The company claimed that its alerts had been sent accurately in this case, and that neither the alert nor the tweet could have caused the sharp drop in the price of BTC that day. Arkham highlighted that the drop occurred between 19:17 and 20:01 UTC, while the alerts and subsequent tweet were sent afterward at 20:07 UTC and 20:08 UTC.

Moreover, a Twitter user named IT Tech said there have been no transfers from the wallets linked to Mt. Gox. This suggests that the sudden decrease in Bitcoin’s value may have occurred for reasons unknown to market participants at the time of writing.

According to data published by blockchain explorer Blockchain.com, a Bitcoin address that was believed to be the U.S. government’s wallet for Silk Road hack funds did witness a transaction on April 26. However, it was an inbound transaction worth only $0.19, which was still processing at the time of writing. This information may add to the mystery surrounding the drop in Bitcoin’s price, leaving investors and analysts alike wondering what the true cause of the decrease may have been.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Annie

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