This Morning’s Bitcoin Price Pump Was Fueled by $100 Million in New Tethers
Early this morning, the bitcoin price leaped nearly $300 in just one minute, spurring a rally that carried the flagship cryptocurrency from $6,466 to $6,899 during a frenzied half-hour of trading. Unfortunately, BTC proved unable to sustain that level, and after tapering off throughout the morning and early afternoon, the bitcoin price made a severe downward pivot that reversed the effects of the early morning rally. The pump occurred almost at the exact moment that BitMEX, the largest leveraged cryptocurrency trading platform, went down for scheduled maintenance. Analysts including Alistair Milne had predicted that large-scale traders might attempt to execute a short squeeze by boosting the bitcoin price while the platform was offline and traders were unable to close out positions, and there is evidence that this is what occurred.However, others have suggested that traders used the BitMEX downtime as an opportunity to engage in illegal market manipulation, under the pretext of a short squeeze.