Rebellious Bots Causes Chaos Sending Bitcoin To Near $8,000
It is not clear to how many cryptos were sold or bought during the incident.
Trading Halted As Bot Causes Chaos
A bot has been blamed for the chaos witnessed on the Bitstamp trading platform. According to the exchange’s founder Nejc Kodric, the bot went on a rampage leading to the closure of trading. During the near half an hour period, euro pairs were affected.
Bitcoins with a market value of €6 million were sold off within a quarter an hour. As a result, the bitcoin price dropped by more than $1000 on the exchange. The largest crypto was trading at $5760.
In six minutes, clients managed to buy another €6 million bitcoins. The price then skyrocketed to $7,600 which was higher compared to other exchanges. The final phase of the chaos saw €1.3 million sold in a span of 60 seconds. In the end, bitcoin’s price then moved to €5,685. The value stayed at this mark for a longer period.
The situation was replicated on other digital currencies but the impact on ethereum was a bit different. At first, the bot purchased ethereum forcing the price to settle at $270 which was higher compared to other exchanges. This led to an increase in ethereum purchase resulting in a drop in prices to $144 then another surge to $288. The bot continued then reversing the market value to about €230.
A look at Ripple’s chart, there were striking similarities to what happened on bitcoin. However, it had some unique characters. When the bitcoin sell-off began, Ripple’s value dropped to $0.37. In a few minutes, the price then went up to $0.77 which slightly above the market value. It later reversed to the normal market rates after about 29 minutes.
The Special Case of Litcoin
The bot affected all crypto in a different manner, but there is something to note about litcoin. The value of litcoin remained under the market price. Litcoin value declined to $1.15 and later reversed it to $56. The bot appears to be very bullish when it comes to ethereum, while litcoin did matter a lot, same case as bitcoin.
At the moment, we cannot establish the total number of cryptos sold by the bot. All cryptos were affected at the same time, hence difficult to determine what really transpired. Currently, there is tension within the crypto world on the side of traders due to massive triangle expected to break anytime.
Other notable exchanges did not respond significantly. The bots on other exchanges did not replicate the rebellious trend.