Bitcoin (BTC) posted its most successful redemption in history on January 12th after a $ 30,000 support test, but market participants are already skeptical about this.
Data from Cointelegraph Markets and TradingView followed Bitcoin as it quickly returned from $ 30,250 late Monday night, posting a 20% increase in just 12 hours.
Guggenheim recommends selling under close scrutiny
This return is happening faster than the previous weekend’s low, and represents the best daily performance Bitcoin has ever seen in dollars and percents. The numbers will be confirmed once daylight closes and levels approach the local peak of $ 36,600 at the time of publication.
However, when the recovery began, there were concerns about the truth of the recent market moves.
Renowned market analyst and Cointelegraph filbfilb claimed that the strength of the agreement disproved the equivalent of market manipulation – in part thanks to stock market turmoil and informal advice from Guggenheim’s asset manager to sell at low prices.
“It’s amazing what is possible when you can bet on the market,” she reads a series of tweets.
“It’s hard not to be a conspiracy theorist when the big stock markets are down and the Guggenheim is asking people to sell volatility when it’s not yet full.”
BTC / USD 12-hour candlestick chart (Bitstamp) with data recovery. Source: filbfilb / TradingView
As Cointelegraph reported, Guggenheim’s chief information officer, Scott Minerd, advised investors that “it’s time to get some money off the table.” The company is awaiting US government approval to introduce bitcoins through the Grayscale Bitcoin Trust (GBTC), and Minerd’s words were soon criticized for deliberately lowering the price during this time.
The stock market takes the heat
Meanwhile, the advertising problem persists on the major stock exchanges Coinbase and Kraken. As Bitcoin’s decline accelerated from $ 38,000 to a low, both platforms faced inherent flaws, which resulted in traders losing control of their orders. Then statistician Willie Wu warned that this effect is mirroring the market as a whole, and has even exacerbated the price decline.
Spot market sales began at around $ 38,000, when Coinbase partially failed to record purchases, causing the price to drop by $ 350 over the counter, lowering the price of the index that futures exchanges use to calculate leverage. By eliminating the descending chaos in speculative markets. ”
“In contrast to previous turmoil in the past two years, where over-indebted markets closed traders, this started in the spot markets, and was greatly exacerbated by partial failure in the stock market, but it did not close in favor of the ecosystem …”
Wu also questioned why futures exchanges had not removed Coinbase from their listings to avoid the consequences.
Buyers weren’t too anxious. According to software developer and commentator Vijay Boyabati, Coinbase volumes exceeded 101,200 BTC ($ 3.6 billion) in the 24 hours prior to Tuesday, which was estimated to have generated a profit of $ 175 million.
“As much as I don’t like Coinbase, its inclusion will be the most important catalyst for the entire market when it happens,” he said in the accompanying comments.
“So a lot of the capital will come into the # Bitcoins market from the stock market.”