Categories: Bitcoin Business

Will Bitcoin’s Volatility This Month Hinder the Future of an ETF?

Click here to view original web page at

On May 17, bitcoin’s (BTC) price experienced a “flash crash,” dropping to $6,400 within minutes, which was triggered by a 5,000 BTC sell-off — equivalent to around $35 million at the time.

An individual investor, speculated to be a whale — an investor holding a significant amount of bitcoin — is said to have placed a massive sell order on Bitstamp, a major bitcoin exchange based in Europe.

The sell order caused the price of bitcoin on Bitstamp to briefly drop to $6,400, which then led contracts on BitMEX, popular bitcoin margin trading platform internationally, to be liquidated in a short time frame.

BitMEX contracts were liquidated by the “flash crash” on Bitstamp because the bitcoin index of BitMEX heavily relied on Bitstamp’s feed prior to May 20.

Before the mass liquidation of contracts on BitMEX, the exchange’s bitcoin index was only dependent on Coinbase Pro and Bitstamp, and as the bitcoin price on Bitstamp plummeted, it consequently led the price of bitcoin on BitMEX to abruptly drop.

Following the incident and the initiation of an investigation by Bitstamp, BitMEX added Kraken to its index to reduce the chances of manipulation.

“Effective 22 May 2019 at 04:00 UTC, Kraken will be reintroduced into several of BitMEX’s Altcoin and Bitcoin Indices. This update is a reflection of a change in our Kraken market data feed handler from using Kraken’s REST API to their new Websocket API,” the BitMEX team said.

Could the incident hinder a bitcoin ETF approval?

Subsequent to the unforeseen 18% drop in the bitcoin’s price, researchers in the crypto industry — including Gnosis product developer Eric Conner — said that the incident could hurt the probability of an exchange-traded fund (ETF) gaining approval by the United States Securities and Exchange Commission (SEC) in the near term.

A whale crashes the entire crypto market 20% in 5 minutes with a single sell order on the books and people actually think an ETF is coming?


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

Bitcoin Price Forecast: BTC/USD Volume Could Indicate A Breakout

Bitcoin’s daily volume spike could create a necessary condition for a breakout. Traded price ranges continue to constrict. Bitcoin’s Bullish… Read More

4 hours ago

Billionaire Tim Draper: Bitcoin Will Hit $250,000 By 2022

Billionaire venture capitalist Tim Draper told BlockTV that in the next several years, Bitcoin could reach $250,000 per coin. "$250,000… Read More

4 hours ago

Maduro Mandates Petro-Financed Public Housing Scheme in Venezuela

Embattled Venezuelan leader Nicolas Maduro looks to expand Petro adoption through a new housing initiative. | Image: REUTERS /THIRD PARTY.… Read More

4 hours ago

Malware InnfiRAT Targets Bitcoin And Crypto Wallets

The malware named InnfiRAT could be stealing bitcoins and cryptocurrency wallet information. It is usually downloaded through email attachments and… Read More

4 hours ago

Bitcoin (BTC) Interest in China Driven by Price Action News

Share Tweet Send Share Baidu search trends in 2019 show Chinese bitcoin interest being driven largely by price action news.… Read More

4 hours ago

Crypto and the Latency Arms Race: Crypto Exchanges and the HFT Crowd

Max Boonen is founder and CEO of crypto trading firm B2C2 . This post is the second in a series… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More