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Arkham Intelligence Denies Role in Bitcoin (BTC) 7% Price Crash

Bitcoin price crashes by 7%

Blockchain analytics firm Arkham Intelligence has expressly refuted claims that it played a role in the Bitcoin (BTC) flash crash on April 26, which saw the cryptocurrency’s price plummet 7% in less than an hour. 

Within an hour’s time-frame, the price of Bitcoin (BTC) fell from $30,020 to $27,789 with the media attributing the drop to Arkham incorrectly sending out an alert about wallets linked to Mt. Gox and the U.S. government moving large amounts of Bitcoin (BTC).

Initially, Arkham confirmed the error via a tweet, stating that it had occurred due to a bug fix, which led to a false alert being sent to a small subset of users

The news alert was subsequently shared and popularized by the famous crypto news account DB on Twitter. However, an hour later, Arkham tweeted that their investigation revealed the alerts had been accurate.

Arkham emphatically stated that neither the alert nor the tweet could have caused the sharp drop in Bitcoin’s price.

It explained further that the crash took place between 19:17 and 20:01 UTC, while the alerts and subsequent tweets were sent at 20:07 UTC and 20:08 UTC, respectively. 

The sudden drop in Bitcoin’s price had significant consequences for the derivatives market, with the total sum of liquidations for crypto market participants surpassing $211 million. 

Meanwhile, Bitcoin (BTC) traders accounted for almost $97 million of these liquidations. At the time of writing, Bitcoin (BTC) price seems to have partly recovered as it is trading at $28,880 according to CoinMarketCap.

Bitcoin price crashes by 7%

Furthermore, Twitter user IT Tech reported that there had been no transfers from wallets associated with Mt. Gox, indicating that the flash crash might have occurred for reasons unknown to market participants.

While a Bitcoin address believed to be the U.S. government’s wallet for Silk Road hack funds did witness a transaction on April 26, it was an inbound transaction worth only $0.19.

Bitcoin (BTC) Partly Recovers from Flash Crash

While Bitcoin (BTC) raised the hopes of many crypto traders in the early hours of April 26 by jumping to $30,020 in the wake of the First Republic Bank price crash, it failed to hold sway due to a flash crash

Time will tell if Bitcoin (BTC) will continue its bull run or reverse to the much-anticipated $25,500 support level.

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