After buyers snapped up $7.8m worth of bitcoins that were selling for $300 each on exchange Bitstamp on Monday, bitcoin’s price appears to have found a hard floor in what has been a largely unpredictable trading period recently.
On Sunday, bitcoin’s price dropped through the 18-month average purchase price of $337.60, signalling uncertainty to many traders in the market. Then, in the early hours of the Asian morning on Monday, a sell order of 26,000 BTC at $300 that was placed on exchange Bitstamp brought a temporary halt to the volatile price and narrowed bid-ask spreads between the four exchanges in CoinDesk’s Bitcoin Price Index (BPI).
By the time of the European morning however, buyers had snapped up the entire order and the BPI jumped up into the low-to-mid-$320s.
“When the sell order for 26,000 BTC came onto Bitstamp, the price dropped from $317 to $300 in two seconds. I’ve just bought back in now that block has been lifted,” said Adam O’Brien, CEO of BTC Solutions, a Canada-based provider of ATM exchanges and leveraged trading services for bitcoin.
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One interpretation is the investor is purposefully trying to force down the price of BTC so they can buy back at a much lower price. Call it something of a confidence scam. The other possibility is someone has been holding for a long time and has lost confidence in BTC going to reclaim the $1k+ mark. Alternately, it was an early adopter who found they needed the $.
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