According to Alex Wilhelm of TechCrunch.com, a massive singular sell order for 30,000 Bitcoins was placed this past weekend at a price of just $300. This wasmore than 10% below the market price at close of business Friday, and it helped created quite the crater in the BTC market. The Bitcoin fall reached a 2014-low of $275. BTC started the year at an average of about $770.
Also read: Bitcoin Sell Wall of Death Being Chomped
This dramatic price drop makes sense from a single order, given all of the positive press Bitcoin has received. The recent news of a PayPal budding partnership, and the agreement of over 400 banks to a Bitcoin exchange purchase agreement covering 22,000 branches throughout Europe. News has been good of late, so why the sudden drop?
The sell order would give the owner a gross return of $9 Million and could have happened for a number of reasons. They may have lost faith in Bitcoin, and just wanted to sell fast. Very easily could have been an early adopter who is panicking over the Bitcoin fall in USD price of over 50% this year. The owner settled for a large shorter-term profit, rather than believe in Bitcoin’s long-term potential. You know what they say about a bird in the hand…..
They may have had an emergency and needed cash fast. Selling at market prices would have taken much longer, so setting a floor made the move much easier to perform, if speed is your goal. The weekend buyers at $300 are making a killing today, as the Bitcoin fall has also caused a quick rebound, with prices passing $340 in a strong day of BTC buying. There are plenty of people taking advantage of the Buyer’s Market, so expect prices to begin to level out over the next couple of days.
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Last modified (UTC): October 7, 2014 11:10