by Marco Rossi
What happened on that damned 9/24?
On 9/24 BTC suddenly dropped. Perhaps, anybody who has an interest in the cryptomarket gasped when opening the latest news that day, since such an abrupt crash caught everyone by surprise.
Last week we saw the implications it had: the overall cryptomarket fell with BTC, although the solidity behind the market — i.e. the spread between BTC and the major altcoins — still managed to have a good outcome, one way or another.
However, we just barely touched on the reason why this happened. It can’t just be a ‘natural’ course of events — no matter the cryptomarket’s systemic volatility.
We already hinted at the possibility that that day a large sale in BTC happened, ‘artificially’ moving the market downward. However, a source close to CoinGenius took a further look into this and gave some insights on who conducted such a large sale.
Let’s start with a chart, the performance of the British Sterling during the week of 9/24:
Notice anything? Interestingly enough, the Pound made its weekly high during the same 10-minute brackets that BTC made its low:
Would this mean that there is a correlation going on here? Well, there is little space for ambiguity. However, according to our source, this is not only a British affair.
What needs to be considered is that in these last weeks there has a been a huge flow of cash fleeing Hong Kong — possibly due to the unrest the country is experiencing.
Thus, it is possible that a large, outbound cash flow from Hong Kong has gotten in the hands of a broker in London, where the sale was placed on the market, influencing the weekly trend in that only day.
The Yuan vs. Sterling chart, compared to the BTC in light blue, also presents a high (at the right hand of the chart) while BTC was going down. Does this mean that also the Yuan is involved in this? The Bank of China, after all, is becoming more and more aware of cryptos and the way the People’s Republic could use them for its avail.
This last week, we might have witnessed an abrupt, unexpected crash in the cryptomarket, which has the potential to have changed the entire game. However, we have also learnt that new movements in the global market are worth being analyzed.
In these, the Yuan and the Sterling will definitely play a major role.