Between 20th tuesday and 21th wednesday, the Ethereum price dove from $319 to 10 cents then rebounded on the GDAX Stock Exchange.
The main reason was because of a multimillion dollar market sell order. The sell order was organised in a range between $317,81 to $224,48.
The second reason was other stop loss have been activated while the price was plummeting, making the price diving deeper (and making lose a lot of traders) ... Just like a vicious circle.
Apparently someone succeeded to make a million from that situation by activating a buy order of 3800 ethereums if the price was 10 cents on the GDAX. This looks like manipulating the market, but we won't really know what was the motivation of this huge sell order.
We know that the cryptocurrency world is made of high risk with high reward. This example is one among a lot. To my opinion:
- we should know that we don't need capital invested in cryptocurrencies (actually I told to myself that my capital is already lost).
- don't be a trader ! Be an investor ! We shouldn't panic and should keep our positions for long term. No need to sell because the cryptocurrency plummeted of 50% or rose of 100%. We need to wait for the moon !
Tell me your thoughts in the comments ! According to you, is it a manipulation of the market ? Do you still trust the cryptocurrencies system ?