Bitstamp began investigating the sell orders that caused the bitcoin crash

BlockBeats, Bitstamp said on its twitter feed that it had begun investigating the large order that caused the sharp drop in bitcoin prices on May 17. Bitstamp said the BTC order was executed on its us dollar trading platform. The big sell led the exchange to clear $250m of long positions, further driving down prices on other crypto-exchanges.

It has been commented that if the operator achieves the desired manipulation of the market by placing and executing orders, the person will be fined and may be locked up in the stock market, depending on the jurisdiction. Others think this is normal market behavior, bit stamp& p; Not all liquidity providers in the market, this order set off a chain reaction of exchanges resulting in no liquidity in the market order.

Regarding the sharp drop in the price of bitcoin on May 17, market analysis suggests that the whole process goes like this:

1. Someone has put 5000 bitcoin selling orders on Bitstamp; 2. The Bitstamp depth is very low; 3. The price index of Bitmex, a bitcoin futures trading platform, has 50% weight from Bitstamp; 4. Lead to explosive orders of Bitmex; 5. Even so, the price of bitcoin immediately returned to $7,000.

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