Mt. Gox-related Bitcoin Alert Not The Cause Of 7% Price Crash: Arkham Intelligence
- Arkham Intelligence denies any involvement in the Bitcoin flash crash that caused a 7% fall in less than an hour.
- The crash was reportedly caused by an alert that wallets linked to Mt. Gox and the US government had started shifting large sums of Bitcoin.
- The derivatives market was hit hard, with over $211 million of liquidations and Bitcoin traders accounting for nearly $97 million.
Blockchain analytics firm Arkham Intelligence denies causing Bitcoin’s 7% flash crash by incorrectly sending out an alert on wallets linked to Mt. Gox and the US government.
Blockchain analytics firm Arkham Intelligence denied involvement in the flash crash that caused Bitcoin to fall by 7% in less than an hour. DB had reported that the crash was caused by the firm sending out an alert that wallets linked to Mt. Gox and the US government had started shifting large sums of Bitcoin.
However, Arkham Intelligence claimed that it had conducted an investigation of the situation and found that its alerts were sent accurately, and neither the alert nor the tweet could have caused the sharp BTC price drop. They also pointed out that the drop occurred before the alert and subsequent tweet were sent.
Data published by a Twitter user showed that there had been no transfers from wallets associated with Mt. Gox. While a Bitcoin address believed to be the US government’s wallet for Silk Road hack funds witnessed a transaction worth only $0.19, which was still processing at the time of writing.
The sudden and steep decline in prices wreaked havoc on the derivatives market, with the total sum of liquidations for crypto market participants topping $211 million at present, with Bitcoin traders accounting for nearly $97 million worth of these liquidations.
At the time of writing, Bitcoin is trading for $28,796, up 1.6% in the last 24 hours, according to data from Coinmarketcap. Despite the flash crash and ensuing chaos, the cryptocurrency market remains highly volatile, with sudden drops or surges not uncommon.
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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