The price value of the world’s leading digital currency Bitcoin has dropped again. This sudden drop was caused by Binance whales.
Bitcoin value decreased from $9150 from $8600 within the duration of just five minutes and lost almost $180 million during this time.
A Twitter user Joseph Young (@iamjosephyoung) also known as the crypto influencer has revealed this fact. He says that the sudden drop in the price value of Bitcoin came as a result of Whales on Binance exchange.
Overleveraged, overconfident bitcoin longs liquidated in quick succession, looks like.
Seems like it was the pullback whales on Binance were looking for.
Went to as low as $8,550 on Binance.
— Joseph Young (@iamjosephyoung) January 19, 2020
Whales known as large-block traders have the ability to cause price shifts in the crypto market.
Effect of Whale liquidation
Whale liquidation could have driven down the crypto market further. Joseph Young says that the crypto whales made few sales on Binance and as a result, the crypto market shift occurred. Within just 5 minutes, the crypto market faced longs liquidate of $180 million in positions.
The sales pressure can drive the prices further down in the crypto market. Sometimes, small losses can also create problems for long leveraged positions. Under such conditions, the long leveraged positions should be closed and the assets should be sold. This process can be regarded as a “long squeeze”.
Possibility of BTC manipulation
There is a huge possibility of Bitcoin market manipulation. Bitcoin manipulation occurs whenever the unknown market forces are at work. The smaller bitcoin market can be affected due to larger-block sales. However, it is very hard to prove that manipulation is clearly taking place.
Binance whales have created havoc by causing a sudden fall in the price value of the world’s leading digital currency in just a few minutes.