Bitcoin reached a low of $550 last night, down by more than one hundred dollars from $680 for the third day in a row. The unexpected crash coincides with the end of the first Australian Bitcoin Auction which closed around the same time as bitcoin’s price movement.
24,500 bitcoins , valued at $19 million prior to the crash, were sold in a 48 hours sealed-bid auction in 11 lots of 2,000 bitcoins and one lot of 2,518 bitcoins. The auction ended at 12.01 am on the 22nd of June 2016, just as price moved sharply.
It is not currently known who participated or how many individuals/companies took part and the winning bid is unlikely to be disclosed unless the winner comes forward. We are awaiting a response from the auctioneer to provide further details. Reasons for the sharp fall in Bitcoin’s price
Last night’s price movement is similar to previous bitcoin auctions which have followed a general pattern of price increase followed by a sharp downwards price decrease once the auction ends.
One obvious reason for this general pattern may be that demand is taken out of the market in one huge sale with another potential reason being arbitrage as bidders may try to buy low and sell high.
Some, however, suggest that there may be other reasons for the sharp fall in bitcoin’s price.
Charles Hayter, CEO of CryptoCompare , states: “The downtrend can be put down to profit taking, mild panic on the Chinese markets and potentially an element reassurance in the Brexit polls as remain looks likely to win.” Bitcoin has fallen more than $200 from a high of $780 to a low of $550 before slightly recovering to $600 in sharp and unexpected movements, bringing back volatility as the halving approaches. A market freeze at bitfinex three days ago […]
