Bitcoin [BTC] flash drops within 30 minutes to settle below $6900: Silk Road to blame?

The cryptocurrency market started off bullish this month but it seems like the “good” days (of the bearish nature) were here to stay for a longer time. Bitcoin [BTC] flash dropped within 30 minutes in the market and reached below $6900 on several exchanges. Bitcoin lost almost $500 in under five minutes.

According to CoinMarketCap, at the time of writing, Bitcoin was trading $6985 with a market cap of $122.18 billion.

Bitcoin price drop below $7000 | Source: Trading View

The market speculates that the reason for this could be the recent movements of the Bitcoin wallet which is reportedly connected to Silk Road accounts. Recently, a Reddit user spotted that almost $1 billion BTC was on the move. These coins were transferred to Bitfinex, Binance and BitMEX in small portions.

Over the past 10 days, the wallet holder had transferred over 11,114 Bitcoin to Bitfinex, one of the leading exchange platform in the world and 4,421 Bitcoin was transferred to Binance, the leading exchange in terms of trade volume. In addition, over 210 Bitcoin was sent to BitMEX, the top Mercantile exchange platform.

In addition, earlier today, Bitcoin [BTC] was trading at its highest at $24000 in one of the cryptocurrency exchange platform in Iran as the government legalized cryptocurrency mining in the country.

Bitcoin was not the only one to bear the brunt of this flash crash. Altcoins have started to bleed as well. Ethereum [ETH] has dropped by more than 10% in just one hour and is trading at $258.86. XRP and Bitcoin Cash, the other leading cryptocurrencies in the market has fallen by more than 9%.

Moreover, Bitcoin Shorts has spiked up in the market and the speculation of Bitcoin price drop has been doing its rounds in the market since the beginning of this month. The data presented on CoinMarketCap shows that at present, the biggest trading volume for Bitcoin is on BitMEX, $3.3 billion.

Robby16, a Reddit user said:

“Shorts mate. Whale vs whale. Longs getting liquidated and rekt. Over 10om tether printed and sent to bitfinex to short.”

Uelga, another Redditor said:

“Crypto flash sale started again or what?”

Crypt0jakd, a Reddit user said:

“Here’s the bull market this delusional sub thought was imminent. Just a bunch of children screaming lambo”

Adam Furbey, a shorts trader from Christchurch spoke to AMBCrypto about this drop and says,

“Is this manipulation again? Like who settles for Bitcoin at $6890? This looks like a deliberate dump. This shit will keep everyone off crypto. Shorts is shit”

His friend, Remy, however, had a different opinion,

“This is when you should get into crypto, people like Adam run off from crypto, they are what I call weak hands. It’s good that they get out. We will have stronger hands.”

Author: Priya 
Image Credit

Published by

Simon Price

Simon has been active in the cryptosphere for over 7 years and is passionate about new technology. When he's not blogging and trading he can be found catching the surf on his local beach.