CoinMetrics suggest it was one "committed actor" responsible for BTC surge

20 Apr, 2019 | Updated: 20 Apr, 2019
by Richard Allen
CoinMetrics suggest it was one committed actor responsible for BTC surge

New research published by crypto analytics firm CoinMetrics has added to the speculation that the sudden spike in Bitcoin in early April was the result of a single trader.

April 2 saw a Bitcoin’s price spike by over $1,000, a surge that many believed signaled the end of the bear market. However, no one is quite sure what triggered. Many traders and analysts have put theories forward, from one massive $100 million buy order, technical moves, to an April fools article. However, recent data put forward by CoinMetrics lends credence to the theory it was one a single trader responsible for the surge.

CoinMetrics subscribe to the theory that it was a “single committed actor” that “went long and traded in a manner that maximized price impact.” The fact that the price movement began at 4:30 UTC, a time when liquidity is at its lowest, adds to this theory, CoinMetrics says.

The firm adds: “Although this cannot be known for sure, such trades would have been designed to trigger stop losses and force a short squeeze through liquidations of margin positions and short futures positions.”

The entire move lasted about an hour, ending at 5:40 UTC. CoinMetrics suggests this time may have been “deliberately chosen” to have the most impact on price movement in the shortest possible time.

There have been various conflicting reports from several crypto experts that suggest the move originated across Coinbase, Kraken, and Bitstamp. CoinMetrics, however, claim the move bean on HitBTC where around 500,000 Tether was traded for Bitcoin, followed by simultaneous buy orders executed on Coinbase and Bitfinex.

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Read more about: Bitcoin (BTC)


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