- A report alleges that a simultaneous purchase of $100 million worth of bitcoin was made across several exchanges
- These purchase were what caused the recent spike in bitcoin price
- The buyer of the bitcoin is unknown
There have been a few small victories like the price of bitcoin rising above $4,000 every now and then and for the most part, the price was steady for the last few weeks. Then, On April 2, 2019, the price of bitcoin broke above $5,000 for the first time in months and is now hovering just below that number.
Most of the industry celebrated this glimmer of hope but there wasn’t any clear reason for the sudden price increase. However, April 2, 2019, report sheds some more light on what might have triggered this.
Crypto prices rise and fall all the time but the most recent price movement was apparently caused by a significant purchase by an unknown party.
According to the report, there was a recent purchase of up to $100 million worth of bitcoin by an anonymous buyer. This purchase was spread across various exchanges such as Coinbase, Bitstamp, and Kraken.
While one might want to dismiss this as a coincidence, an analysis shows that indeed, a large order was coordinated among those exchanges.
According to Oliver von Landsberg-Sadie, chief executive of cryptocurrency firm BCB Group, the amount of Bitcoin bought was above 20,000 units.
“There has been a single order that has been algorithmically-managed across these three venues, of around 20,000 BTC,”
“If you look at the volumes on each of those three exchanges – there were in-concert, synchronized, units of volume of around 7,000 BTC in an hour.”
Still, this poses the question of what triggered the buyer to make such a large purchase across several exchanges at the same time? What would be done with such a larger amount of bitcoin? Who surge mystery buyer or buyers in the first place?
Even with all these unanswered questions, all that is left for now is to watch the price movement over the next few weeks to judge the long-term effects of the mystery buyer’s actions.