Bitcoin (BTC) had its most successful recovery in history on Jan. 12 after testing $ 30,000 support, but market participants are already suspicious.
Guggenheim sells advice under scrutiny
The comeback comes even faster than its earlier fall over the weekend and marks Bitcoin’s best daily performance ever, in both US dollars and percentages. The numbers will be confirmed once the daily candle closes, with press time levels approaching a local high of $ 36,600.
However, the recovery had barely begun, but concerns arose about the authenticity of recent market movements.
Popular market analyst and Cointelegraph employee filbfilb argued that the strength of the rally contradicted what amounted to market manipulation – thanks in particular to stock market disruptions and unofficial advice from asset manager Guggenheim to sell at lower price levels.
“Amazing what is possible if you can offer in the market”, part of one series of tweets read.
“It’s hard not to be a conspiracy theorist when two major exchanges become unusable and Guggenheim tells people to sell the dip if they aren’t filled yet.”
Such as Cointelegraph reported, Scott Minerd, CIO of Guggenheim, advised investors that it was “time to get some money off the table.” The company is awaiting approval from US regulatory authorities to enter Bitcoin through the Grayscale Bitcoin Trust (GBTC), and Minerd’s words quickly garnered criticism for intentionally bidding the price in the meantime.
Exchanges take the heat
For the major exchanges Coinbase and Kraken, the publicity headache continued. As Bitcoin’s decline accelerated from $ 38,000 to its lows, both trading platforms now saw characteristic downturns, causing traders to lose control of orders. The domino effect, statistician Willy Woo subsequently warned, had an impact on the entire market and even made the price dip worse.
The spot market selloff started around $ 38k, then Coinbase partially failed, registering no purchases, making the price $ 350 lower than others, lowering the index price that futures exchanges use to calculate leverage, causing a bearish havoc in speculative markets was devastated., ”he explained on Monday.
“Unlike previous crashes over the past 2 years, where over-indebted markets were led by trader liquidation, this one started in spot markets, then was greatly bolstered by a single exchange that partially failed, but did not turn itself off for the good of the ecosystem. “
Woo also wondered why the futures exchanges hadn’t removed Coinbase from their lists to stabilize the fallout.
Customers seemed unconcerned. Such as noted By software developer and commentator Vijay Boyapati, Coinbase’s volumes exceeded 101,200 BTC ($ 3.6 billion) in the 24 hours to early Tuesday, which he estimates led to profits of up to $ 175 million.
“As much as I like Coinbase, their IPO will be a major catalyst for the entire market when it happens,” he said in the accompanying comments.
“In this way, a lot of capital will flow from the stock market to the # Bitcoin market.”