This exchange reduced the price of Bitcoin to $9,000: here’s why it’s up


 

According to CoinMetrics data, a massive sale in Bitstamp led to the fall of Bitcoin (BTC) in the whole market. The main market capitalization cryptomone fell USD 150 in seconds in the exchange, far below the average market price at that time.

CoinMetrics researchers said:

„Today’s market decline was led by trading activity at Bitstamp, where the price of Bitcoin fell $150 in seconds, well below the rest of the market.

The price of Bitcoin drops lower on Bitstamp than other exchanges on July 10

The massive sale at Bitstamp coincided with a sudden sale of BTC by the miners. ByteTree shows that the miners sold 558 BTCs more than they mined in the last 24 hours. This suggests that the miners led the correction of Bitcoin on July 9, possibly trading on Bitstamp.

A bad day for the stock leads the Bitcoin price below the key support of USD 9,300

Miners have a significant impact on the Bitcoin exchange market
The miners are one of two external sources of unparalleled selling pressure on Bitcoin, as investor Willy Woo explained earlier.

When miners start selling BTC, and the market does not immediately absorb the selling pressure, it can cause an abrupt reversal. That’s probably what happened on July 10 when the price of BTC fell to around USD 9,100 from USD 9,400.

Over the past month, miners have been regularly selling a modest amount of BTC. But the miners have always maintained a positive net inventory for more than five consecutive weeks. In other words, the miners have been selling less BTC than they have since early June.

As the miners began selling a relatively large amount of Bitcoin for the first time in more than a month, BTC saw a rapid drop in prices in the short term.

 

Although the massive sale occurred mainly in Bitstamp, the company executive emphasized that it was not a sudden collapse. Hunter Merghart, head of U.S. operations at the exchange, said it was simply normal market activity.

The peak in Bitcoin’s entry to the exchanges preceded the price correction to $8,600

Merghart said:

„Happy to see the market movements analyzed, but I’m not sure a movement of ~ 2% should be called a sudden collapse. This is also how markets work, especially when an exchange is not acting as a market maker. We let our clients try to take advantage of arbitrage opportunities, not ourselves.

In short, the sellers of Bitstamp probably initiated the unexpected 2% price drop of Cryptosoft followed by organic selling pressure from traders and customers on the exchange.