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November 19, 2019
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Manipulation? CME Bitcoin Futures Flash Crash to Fill $eight.5K ‘Gap’

Bitcoin (BTC) buying and selling is coming below the highlight this week after one other flash crash sparked considerations that merchants are manipulating markets.

As varied social media customers famous, together with statistician Willy Woo on Nov. 5, uncommon occurrences on exchanges give motive to be important of Bitcoin worth actions. 

Woo: I’m “highly suspicious” of BTC/USD

As Cointelegraph reported, final week noticed sudden erratic habits at two exchanges — Deribit and Coinbase Pro — which appeared to affect BTC/USD.

On Tuesday, it was CME Group’s Bitcoin futures which continued the development. In early buying and selling, BTC/USD futures instantly tanked to under $eight,500 earlier than rebounding to $9,300.

CME Bitcoin futures each day chart. Source: TradingView

That decrease stage beforehand shaped a niche in futures buying and selling — when one session begins greater than the place the final ended. Analysts word that Bitcoin typically seeks to “fill” these gaps, however on this case, it did so with minimal sources.

“I cannot believe how crazy trading BTCUSD on the short term is right now. The gap on the CME has filled already. It’s thinly traded yes. But man, I’m highly suspicious of the price action across all the exchanges of late, more so than usual,” Woo summarized.

Cointelegraph contributor filbfilb reacted equally, noting the weird nature of the value filling at CME.

“Don’t know what happened there!” he advised subscribers of his devoted Telegram buying and selling channel on Tuesday.

For Twitter analyst lowstrife in the meantime, the habits was a “good example” of market manipulation.

“If you look at my original tweet, all the volume printed before the actual dump. But on the 1 minute chart it looks like it was part of the entire move. This is called painting the tape,” the account wrote.

BTC worth purple herring?

Bitcoin has seen two main run-ups in latest weeks, defying the earlier sentiment that markets would stay decrease within the months earlier than the May 2020 block reward halving occasion. 

The strikes appeared to take analysts abruptly, with BTC/USD recording its second-largest each day positive aspects in historical past late final month. 

Longer-term, 2019 has been characterised by intervals of worth stability punctuated by sudden upward and downward actions occurring in a matter of minutes or hours.

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