Bitcoin Tumbles After Mystery "Whale" Dumps $50 Million In One Trade

The price of several cryptocurrencies took a sudden hit Tuesday over the course of 20 minutes, which some suspect may be the result of a single Bitcoin whale who unloaded over $50 million worth of the digital currency in one Bitfinex trade. The drop comes one day after the third largest bitcoin wallet also unloaded around $50 million of the digital currency.

As Marketwatch first noted , "the balance of wallet 3D2oetdNuZUqQHPJmcMDDHYoqkyNVsFk9r — an anonymous digital account which is valued at $1.49 billion — fell by 6,500 bitcoin Tuesday, with the average sale price sale being $8,146.70, a total value of just over $50 million, according to bitinfocharts."

The sale comes a day after the third-largest wallet, which famously purchased over $400 million in bitcoin in February, let go of 6,600 bitcoin at an average price of $8,026.


Combined, the two whales unloaded over $100 million of bitcoin within 24 hours. 

The crypto community was abuzz after the precipitous drop.

“Holy hell, these dumps out of nowhere. I was looking at some alts, then I check back to bitcoin and BAM it dropped $200 instantly,” one Reddit user wrote.

As there was no immediate news or catalyst, some attributed the sale to Tuesday's report that New York Attorney General Eric Schneiderman had launched an investigation into 13 cryptocurrency exchanges including Coinbase, Gemini and Bit Trust. The probe seeks information on fees, volume data and procedures governing margin trading among other things. However, the news hit some 4 hours prior to the sale.

As we reported earlier, a questionnaire was sent to each exchange requesting information about trading policies and procedures, basic operation and fees, as well as controls to prevent money laundering and hacks.

"With cryptocurrency on the rise, consumers in New York and across the country have a right to transparency and accountability when they invest their money ... "Yet too often, consumers don’t have the basic facts they need to assess the fairness, integrity, and security of these trading platforms."

“Our Virtual Markets Integrity Initiative sets out to change that, promoting the accountability and transparency in the virtual currency marketplace that investors and consumers deserve.”

And as the Independent adds, although the initiative is designed to protect the interests of New York residents who trade cryptocurrency with these exchanges, the international nature of the businesses means the outcome of the probe could have wide-reaching consequences.

The NY-AG investigation comes a day after IMF head Christine Lagarde said an even-handed approach is required to regulate the cryptocurrency space.

“Just as a few technologies that emerged from the dot-com era have transformed our lives, the crypto assets that survive could have a significant impact on how we save, invest and pay our bills,” Lagarde wrote in a blog post on the IMF website, adding “Before crypto-assets can transform financial activity in a meaningful and lasting way, they must earn the confidence and support of consumers and authorities."

“An important initial step will be to reach a consensus within the global regulatory community on the role crypto-assets should play. Because crypto-assets know no boundaries, international cooperation will be essential.”

As we have documented in the past, previous selloffs have also been attributed to single-user selling - with the most famous case being a March 7 "Mt. Gox" sale, first reported here, when trustees of the insolvent exchange announced the liquidation of over $400 million in Bitcoin and Bitcoin Cash.


Laowei Gweilo 3LockBox Tue, 04/17/2018 - 19:03 Permalink


a mere 50 million USD is a 'whale' now?

god forbid he tries to sell the other 1.44 billion USD on the account lol


that's some scary volatility:price volume imo o.0

 ... enough that a 'whale' could use it to manipulate the price to BTFD even, if you think about it lol

makes you wonder how much manipulation goes on, and if some of these whales contact each other to sell together first (small $10-50 million batches) first before they buy.

In reply to by 3LockBox

Exponere Mendaces Bitchface-KILLAH Wed, 04/18/2018 - 12:43 Permalink


BCash holders are the ultimate rubes, not only did they get dumped on after the GDAX listing debacle, but they continue to believe in their annointed "leader" no matter how insane or stupid he acts.

Just go here for some laughs -

Bitcoin regularly beats BCash's ass when it comes to overall transactions and utility - now with Lightning on main-net, they don't have a leg to stand on. A dude in Australia sent a ONE SATOSHI payment with a 0.00000001 fee and it cleared in SECONDS.

Roger Ver and his toadies don't have much of a future trying to fight that, lol


In reply to by Bitchface-KILLAH

lookslikecraptome Big Whoop Tue, 04/17/2018 - 19:43 Permalink

U know I kinda like ole lester  caps and all. He asked a question which no coin aficionado has even attempted to answer as I could see. Might be wrong.  That question is what currency or index has ever lost 65% of its value in 90 days. 

My question is how do u think the dumb fuck who sold his 500,000.00 dollar home for BTC in December feels about his STORE of Value at this point and if he is off of suicide watch yet. 

As far as it plunging again. Who would ever imagine that it could happen?  K here is the snark tag   #snark.

Lotta coiners telling mos he was an idiot for pointing out that one single candle stick up and saying it looked specious. 

life in the crypto fast lane is always interesting. 

And where are the Asian/Chinese buyers that were gonna show up after Chinese new year or something and BUY BUY BUY BUY crypto to the moon.  They showing up any time soon?  

In reply to by Big Whoop

lookslikecraptome Decoherence Tue, 04/17/2018 - 21:56 Permalink

Amen. (B)utt rammer does not seem to be well endowed in the cognition department.  

From the B boy.

"Nobody who is in crypto even cares unless it's a +/- 75% move.  Those who have achieved Satoshi Conciousness do not contemplate suicide unless we are down 18,000%."

Spoke in the true moronic fashion of some one who owns .00005 of one lite coin. u will note he misspells consciousness leading one to wonder if he is conscious at all. 

There is some serious trading and investing delusion in That noodle of his.  

In reply to by Decoherence

Decoherence Mr_Potatohead Tue, 04/17/2018 - 20:16 Permalink

Would it have mattered even if Bitcoin went back up over 10K?  The result would have been the same.  Whales are manipulating the market up in hopes of a sucker's rally to give them a better exit.  The fact they couldn't get it over 10K probably scared the hell out of them and soon they will be bailing at any price.  If I owned any crypto, I'd dump it now before it goes down to where it started.  

In reply to by Mr_Potatohead