On the 17th of May, major crypto exchange Bitstamp announced the launch of an investigation in a tweet after a large Bitcoin sell order heavily impacted its order book. Earlier today Bitstamp reported the execution of a large sell order in Bitcoin to United States dollars on its platform.
Though the company has not provided details of the transaction, the price of Bitcoin has dropped drastically about 20% from around $7,800 to as low as $6,250 in less than 30 minutes earlier today. According to TradingView (a trading analytics platform), briefly, after the crash, the price of Bitcoin surged back but gained stability below $7,400.
The Block (crypto news outlet) reported the sell order on BitStamp led to a liquidation of $250 million long positions on the Bitmex exchange, which resulted in the decline on other crypto exchanges.
Crypto publication Forklog reported the sell order on BitStamp included 5,000 Bitcoins sold at $6,200. Some people in the crypto community suggested that the sell order could have been a mistake, with the owner of the order having meant to sell his Bitcoin at $8,200 instead of $6,200.
Among the top 20 cryptocurrencies, 19 are reporting significant losses. Bitcoin is down around 10% over the past 24 hours to trade at $7,166 at press time after trading at around $7,800 yesterday.