Topic: An unconfirmed tweet caused a $288 billion fall in bitcoin market value today (Read 292 times)

There are many factors that can drive crypto prices down, I don't think it's just those tweets. maybe behind the scenes there is a big factor in why crypto dropped so badly in just a few days. so I think this is a problem not from one side, but comes from many parties

Any fake news without a legit source but viewed by many people can cause panic and FUD especially on the current market condition which is fear is very intense. I saw this scenario many times on different project when bunch of random tweets that slinging fake conspiracy theory without a source was successfully destroy the momentum of that particular coin.

Do not underestimate the fact that misinformation spreading like this, is a government sanctioned attack on Crypto currencies. We know that the US elections suffered as a result of FUD being spread on social media and also Russian hackers that were working in the shadows.

We also know that Butt hurt "Yellen" are still out to revenge the "Bitcoin guy" incident, so it will not be strange if someone latched onto that to create this FUD! (People are expecting a strong focus on strict regulations on Crypto currency in the US) 

Bad news about bitcoin are the one who can make the bitcoin's price go down.

Tweets are not that certain to affect the price of bitcoin in the market especially that it doesn't have any strong evidences or sources, unless, a famous personality stated it.

Hoping that the fall of bitcoin price will stop as soon as possible but I believe that it will go high again and make another ATH in the future.

Not just that. Also China’s Xinjiang Blackout and Bitcoin Hashrate Correction.

Someone mentioned a third possible reason, but I don't remember now which one. In any case, it doesn't seem to have lasted long FUD.

Edit: I've remember now, over-levereged longs blowing up. People who use too much debt an get liquidated when there is a small dip.

So this is the reason of the unexplained Fall yesterday? This is how the market do now being stupid believer of social media posts.

I hate to see desperate market like this and How long will be the faker may succeed in their target of bringing the market Ups or down?

It's not even about proven resources, but about the price of bitcoin. The higher the price of bitcoin, the faster a certain part of people will react in this way to any negative information about the cryptocurrency. Moreover, such information will not always be false. This is one of the many reasons why Bitcoin will find it increasingly difficult to rise in value as it rises. These objective reasons should never be dismissed and ignored. Cryptocurrency doesn't develop on its own. It will have to exist in a society ruled by states.

That is pretty influential tweet if it can do that to be fair. I don't get how the prices suddenly did go down but I am sure that we can see it bounce back in no time, and if it ever comes to the prices going down then so be it, I will just hodl my bitcoin until the prices bounce back. Crypto ban in Turkey is nothing to worry about, I am sure that it will turn around anytime soon.

According to Willy Woo on twitter, somebody how was expecting the hash rate issue has deposited 9000BTC just a few hours before the hash rate drop and may be playing now a bear game.
Imho it's as good guess as any, still may worth mentioning...

Even here in India, a similar rumor about a potential ban by the government was spread a few months back. The rumor was confirmed, when the proposed bill was uploaded to the parliament website. But there was a massive social media campaign against the proposed bill and the finance minister didn't presented it during the budget session. The danger is still not over, but those who sold their coins in panic are regretting about their decision now.

Things like that often happen here in crypto, the bear market that is. However, the news about the US treasury department must be confirmed if true in the quickest of time possible. We're talking about billions of losses here caused by a tweet that isn't even confirmed if true. Someone has to do it so no further FUD happens and so no more people FOMO out of bitcoin.

A tweet with barely 5k likes? Don't see how that can pull Bitcoin price that much. I believe there must have been something else that could have caused it. I overheard someone else say that it was because crypto was banned in Turkey. IDK but... Some of these fall are sometimes uncalled for!

Nah, I think it was just a coincidence. Bitcoin price always corrects after a major rise or after achieving an all-time high. If you have been following charts, the price fall wasn't something random. Over the past few days, the market has been sideways and trading in a tight channel on the Daily chart which was a signal that we could have a break-out in the up or downside.

You are better then a lot of people if you do that. I have seen a lot of people, even "financial professionals" wait till the last moment to cover their tax payments.
They just see them as another bill do "later"
Yes if you sold the end of March, you should probably just cover it then. But mid January? late February? It's a tough call.

I cheat a bit and cover about 1/2 to 3/4 of the taxes out of the sale and have my job withholding set to single / 0 dependents so although my weekly check is lower it's a buffer for taxes owed.
Sooner or later it's probably going to bite me in the a$$ but for the last few years it's worked.

-Dave

This only speaks about how gullible people are and how they react to any news without checking the information. Traders behave like children. However, this is a historical event from which it is worth drawing lessons and I think it makes sense for the community to create a list of proven and trusted information resources that can be relied on in market analytics. I think as soon as everyone understands that the "news" is a deception or just a misunderstanding, bitcoin will win back its losses and everything will return to the old level of 60 thousand and above. And speculators will benefit from the situation.

FUD has always been used to shake off weak hands from the market. I am holding my position. People need to be careful what they fall for, they may eventually buy back at a higher price range. Only what one needs to do is to always have some stable coins so as to buying such flash crashes.

These types of tweet by the government have been around for many years but that could not create such dips in the market.They all try to manipulate the prices by creating FUD in the market and traders panic sell their Bitcoins contributing more to make situation worse.Money laundering has been one of the main distracting factor for government to give possible explanation that why they don't want to promote such decentalized currencies but it is just an excuse because fiat is also used for same illicit activities. The possible reasons for such price fall according to my perspective are:

1)Turkey ban on Bitcoin related transactions that have eroded the funds from Bitcoin market which was some negative news from such nation.

2)The insane rise in Dogecoin have lead the investors transfer their funds from Bitcoin to doge in greed of profits in short period that's why there were insane pumps in Dogecoin within a week.

3)China further prompting their CDBC the digital Yuan which were somehow distracting investors to further invest in bitcoin that they might issue some negative news for crypto market.

But all these are temporary dips and normal correction for long term holders who didn't care much about these price dumps because we still are at $55k which is more than 2017 crash so hope bull market will soon hit the graph so stay calm and Hold your coins.

when a price dips/corrects/crashes.. DO NOT CRY.
instead celebrate.. because its BUY time

buy the dips

I think the money laundering issue is not the first time for people who have jumped to bitcoin since last 5 years. Last time I've heard it's about the teroro fund or drugs stuff. Accept it or not, this kind of issue drives the price going down time to time especially for the weak hands who usually reading news via the title only.
But on the bright side, it's always a chance to buy the dip

As a holder of bitcoin, I really feel disadvantaged, because when bitcoin growth has reached its peak, there are always parties trying to destroy the existence of bitcoin in the market. this is already the most terrible topic, when all the focus turns to cryptocurrency as if pulled back so as not to dare to try to enter.

It does make sense, this is common on cryptocurrency the only difference is the numbers on how the price pump or dump.

This is when there is fud, fomo is a big thing for shorters/day traders. While bitcoin is on the pump or dump, domino effect for alts possibly happens.

A mere tweet trimming $288 billion down from Bitcoin? Not possible at all, especially because it is about the same old issue of money laundering. Why does this tweet even matter? If somebody unknown would tweet that Bitcoin is used for money laundering, buying contrabands, paying for illegal services, etc, I don't care anymore. That's a very old issue. I won't ever be selling a satoshi for that recycled crap.

about the dip, i'm hearing a bunch of things, that it was caused by:

1) FUD coming from china and also some kind of power outage (which is awful for miners and hash rate) that's been going on in some cities over there for a few days now. 2) Whales manipulating the market, and 3) this damn tweet...

honestly, who cares? just buy now (it's a flash sale) or hodl your coins. To those who bought at 51k, bravo and props to you 👍 To those who sold, thanks for the cheap coins, now gtfo, you don't belong in this market, you weak-hand dummy. 🤲💎

They know for having fake tweets before, why would anny body trust them i don't get it

And if it is true so what if some financial institutions use cryptocurrencies to launder money . They will get a fine and then its over. Always goes that way, we seen it many times before in banking system. Nothing happens. Its buy the dip always is,

It could somewhat contribute to the current price situation, but I agree with those who don't believe that it was the only cause. After all, it's not only just a tweet with unconfirmed information, but the tweet also got less than 10k likes and reposts, so it's hard to call it highly influential. Some people could take it seriously, others could start selling because of seeing that some people were already doing it. And there's also the factor of a natural price correction that comes after a period of the price remaing around the ATH level. The support for $60k is still quite weak, so the price keeps falling down a little once in a while.

It’s just a correction in a bull market, sure it can make you panic for a short while but it’s nothing we haven’t seen before.

See below a chart detailing all the significant dips during the 2017 bull run to $19,xxx



We’ve flushed out some weak hands, bitcoin’s are transferred to stronger hands & off we go again. Another new ATH within 6 weeks, no problem.

Have a great day

While the tweet fud from FXHedge fueled the dump, I want to add that the market was due for some correction already. Everything (including RSI indicator) has been screaming overbought for the past few days to a week. The funny thing here is that most traders saw the signals that indicated a possible market correction and ignored it only to keep buying and opening new positions.
Exactly my point. Market has been itching for a correction and that tweet gave it all the gas it needed to get started. If news like this one keeps coming, we might be heading untoa bear market sooner than later.

Sheesh it was only three years ago that BTC dropped from $20k to $6k in a few days, I remember well this site was in denial the first 1/2, to $10k, then to $5k

Now today we see an 8% decline and people are panicking

This is all normal, I'm rather sure we'll see a reversion to $20k in the coming days, and why not? You all know that Musk bought billions, ... you really think all those billionaires are going to see their paper profits evaporate, the little guys the HODL'rs are the bag holders.

The Musk people bought BTC on the rise, the profits cover their losses just like DeLorean bought cocaine years ago to cover his car biz. All these corporations now must sell before their paper-btc profit becomes a loss.

Hodl on, because we would all hate to see Musk go bankrupt.

Then we all know that the price will find bottom and climb again.

Look lots of alt's are down -25% today, so BTC looks really good.

USA stimmy checks are rather not coming anymore, so where is all this new money going to come from??

I find this arg funny, lots of people are saying that FXhedge has an excellent track record, and for that matter all GOV has to deny the leak. The announcement is a great cover for insiders. Having gone public, it covers gov insiders so they can sell prior to the 'confirmed'. As to the story, there is always at any given time GOV investigations into BTC, so this tweet was true yesterday, today, and tomorrow.

The fall just shows how perishable that BTC really is, its really a house of cards, that can be blown down by the slightest worry by the chattering classes.

BTC has gone parabolic in the last six months, so profits had to be taken, nothing that goes parabolic ever stays in the clouds very long. Nothing.

Other than stimmy checks there is no reason for DOGE to be up 300%, the entire crypto space has gone insane, not just BTC.

But this is all just like 3 years ago, the first response to a BTC collapse is always denial

Well.. the momentum was building for quite some time and the tweet just acted as the trigger. Reptilian overlords Janet Yellen and Elizabeth Warren were going ballistic a few weeks ago, asking for greater regulations and a "crackdown" on unauthorized transactions. Also, nowadays Kamala Harris is making most of the government decisions since Biden's health is not that good. Biden's term is going to be difficult for the cryptocurrency sector and we can expect more and more hostile actions from the government in the coming months.

pretty risky although i can see the appeal of waiting and cashing cap gains taxes out as late as you can. if corn goes up you win, goes down, you lose.

me, when i cash an amount out i always cash out an extra 15% or so and set it aside as fiat somewhere. boring, yup. but that way i know i have the quarterly payments.

I don't think an unverified tweet will make bitcoin fall continuously. We have seen that bitcoin has very stronghold at around 50k. The tweet may have contributions to this sudden drop but I believe it is already combination of various factors. Maybe, it is already time for correction. Curious if bitcoin will fall below 50k and go down to 40k. Maybe, it is the time to buy btc, for those who are wishing for btc to go down. This is the time you're waiting for.

Some people want to get your valuable BTC for cheap. If you fail into this trap it's your own fault and not someone's else. Be wise and don't take the FUD.

Tweeting in CAPS seem very legit to me. LOL.

If you look at that persons tweets I would put it in the same pile as any other random person tweeting.

For those of you out of the US who don't know, your 1st quarter estimated tax payments were due April 15th .
So you had to have your check for taxable capital gain profits in the mail by Thursday.

Some people may have played the game of writing and mailing the check on Thursday knowing they could sell though yesterday on Coinbase / Geminin / a few other places and have them ACH the funds to your checking account, so when the IRS deposits the check early this week it's covered.

Technically it's illegal since you are not supposed to mail checks that do not have the funds to cover them. In reality, it happens a lot.

Add that to a bunch of people just taking profits and you have a big drop.

Just my opinion. Not financial advice.

-Dave

This is the strategy of the manipulator they want to spread fear so that they can see bitcoin dump and people will be panic to dump it more, for sure those whales are now preparing to buy now at the lowest point of this since after this fud get away they will be lucky again counting their winnings for this current market bad days. Maybe people should be calm since as you said its unverified so people should not dump so that they will not lose their money for this incident.

We already have the China issue in the last few days that might have started the dip, a reported fire or something in the province of Xinjian, in which there are a lot number of miners, but we're seems to be stable around $60k-$62k.

And this this so called 'unconfirmed tweet', we also have the Coinbase insider selling, there's so many news right now that we can't pinpoint the exact reason for the massive liquidation today. But in any case, it seems that the market hasn't learn, a single tweet really cause this one?

Really? Is this the thing caused Bitcoin to drop down at a very high rate? You say that the source is not verified. Then, how can it have an affect on Bitcoin like this? I don't know, it doesn't make sense, in my opinion.

This is a classic FUD to begin with, but we may be very well see who are those going to be charge for money laundering. And yeah, when we hear this kind of news, we can say that there are people who are going to panic or justify their sell off because of this negative news. So let's wait till the dust settled, if there some semblance of trust, or just individual's trying to bring the market down again.

I personally believe that some traders took that seriously, we've seen something like this multiple times in the past. It's a very good strategy to wipe out retail traders and allow big players to make a better entry for the next leg up. Whether this is a controlled scenario or not, nobody knows for sure.

In addition to this, the news about Coinbase team selling nearly $300 million of their shares might be related to this drop too.

I don't think just one anonymous tweet can bring down the entire cryptocurrency market in such a way! Especially when the allegation is quite normal and nothing out of the box. Every government says that cryptocurrencies are being used for money laundering but it never hurt the market in such a major way.

Is it too hard to think that profit booking is happening after the meteoric rise in prices since last few weeks? Also a day ago Turkey banned cryptocurrency as a method of payment. This news might also have contributed to the fall.

One tweet from anonymous source is too hard to believe!

An unconfirmed report from the US Treasury Department that several financial institutions laundered money with cryptocurrencies caused prices to fall in the cryptocurrencies market.
According to U.Today, bitcoins hit $ 51,000, and altcoins suffered even more severe losses.
The title that apparently caused the crash was posted by a mysterious Twitter account called FXHedge.
The tweet cut $288 billion in cryptocurrencies market volume within 54 minutes of publication. At the time of writing, the tweet has received more than 4,700 likes, despite citing an anonymous source and disabling comments.
Jake Chervinsky, general counsel at Compound Finance, wrote that he does not consider the tweet valid because the money laundering cases are under the jurisdiction of the US Department of Justice. He added that the simultaneous accusation of several financial institutions was "unusual".

* It should be noted that FXHedge has a history of false claims before.

Source: https://u.today/this-tweet-just-erased-288-billion-from-crypto-market-cap?amp

The tweet: https://twitter.com/Fxhedgers/status/1383611847144730626