Bitcoin SV (BSV) Price Flash Crashes to $44 on BitFinex, Triggers Price Manipulation Fears

 
By CCN: Bitcoin SV price witnessed a sharp fall on BitFinex on Thursday — a flash crash that dragged the cryptocurrency from $254 to $44 in a matter of minutes.

BitFinex has no issued any clarification about the sudden dump of 25,000 BSV. It is likely that somebody mistakingly sold Bitcoin SV at the rate of $44 per unit, or that price manipulation was effective. What's evident, however, is somebody matched the Ask Price and assisted Bitcoin SV to climb back to the old levels within minutes.

bitcoin sv
BITCOIN SV PRICE DROPPED UP TO 13-PERCENT WITHIN A FEW MINUTES | SOURCE: TRADINGVIEW.COM, BITFINEX

Price Manipulation

The flash crash closely followed media reports highlighting how scammers are artificially pumping the Bitcoin SV rate by publishing fake news. Impersonating a Chinese news website Coinbull, the shady market makers on Wednesday spread a piece of false information stating that Dr. Craig Wright transferred bitcoins from a wallet that belonged to Satoshi Nakamoto, the pseudonymous creator of the Bitcoin protocol.

Dr. Wright, who launched the Bitcoin SV as the "real bitcoin" in November 2018, has claimed for years that he is Nakamoto. However, the Australian scientist so far has failed to show concrete proofs — the ownership of the first-even mined bitcoins, that could prove he is the creator behind the world's most valued decentralized cryptocurrency. Hence, the fake news read (translated from Chinese):

"Dr. Craig S Wright shifted 50k BTC from the biggest BTC wallet to Binance, which confirmed he is the real Satoshi. As such CZ will re-list BSV and make an official apology on Twitter."

BSV Market Fundamentals are Outright Non-Sense

The false alert prompted an unbelievable buying action in the Bitcoin SV market. The BSV-to-dollar exchange rate posted up to 121-percent gains within a mere 36 hour-timeline, bringing the pair's net 7-day profit to 155.67-percent.

Nevertheless, what's backing Bitcoin SV's outrageous upside moves are fundamentals that have no fat. The asset's first big pump took place on May 21, right after the US Copyright Office approved Dr. Wright's claim on the Bitcoin whitepaper. Later, as CCN covered here, a copyright claim did not prove that Dr. Wright is Nakamoto. It merely represented a claim over works, as further clarified in a press release issued by the US Copyright Office. Excerpts:

“As a general rule, when the Copyright Office receives an application for registration, the claimant certifies as to the truth of the statements made in the submitted materials. The Copyright Office does not investigate the truth of any statement made.”

Despite the clarification, Calvin Ayre, the founder of CoinGeek.com and a close associate of Dr. Wright, projected the copyright claim as proof that Dr. Wright is Nakamoto.

But that did not stop the artificial pump. In just a week, the Bitcoin SV price jumped from $63 to $254 on BitFinex.

Click here for a real-time Bitcoin SV price chart.

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About the author

Yashu Gola
Yashu Gola

New Delhi-based Yashu Gola has been working as a cryptocurrency analyst/journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.