Bitstamp Crypto Trading Bots Behave Erratically Sending BTC to $8,000, ETH to $300 and LTC to $1
Bitstamp is again in the media after experiencing strange trading patterns. According to Nejc Kodric, Bitstamp’s co-founder, the situation has been created by a bot that ‘went wild.’ To be clear, Bitcoin (BTC), Ethereum (ETH), XRP and Litecoin (LTC) have experienced strange movements during the European morning on October 7.
In 15 minutes, €6 million ($6.9 million dollars) worth of Bitcoin was sold, crashing the market at that moment. However, another €6 million dollars was bought in just six minutes. That sent the price of the most important cryptocurrency to €6,600 ($7,600 dollars). In just over 30 Bitcoin was traded $1,000 dollars under and above other exchanges.
After it, the price stabilized around €5,685 ($6,500 dollars). During the night and the morning, it remained close to this price level.
The situation was very similar in other virtual currencies. For example, Ethereum experienced a surge in price up to €235 ($270 dollars). In other exchanges, Ethereum was traded for $220 dollars. However, immediately after, the price of the second most valuable cryptocurrency dropped to over €125 ($144 dollars). After it, it stabilized in 15 minutes close to €195 ($224 dollars).
XRP had a similar situation to the one experienced by Bitcoin. This virtual currency dropped to €0.325 ($0.37 dollars). After it, it skyrocketed up to €0.67 ($0.77 dollars). Immediately after, the cryptocurrency went down to around €0.43 ($0.5 dollars).
If this was already shocking, what happened to Litecoin is even worse. The cryptocurrency founded by Charlie Lee went down to €1 ($1.15 dollars). But then it suddenly moved up again to €49 ($56 dollars).
These patterns experienced by the market show that some crypto trading platforms are not yet offering institutional-grade services. When the U.S. Securities and Exchange Commission (SEC) talked about market manipulation it was signalling these things.
However, there is no explanation about what happened with these different trading bots that started to purchase and sell massive amounts of virtual currencies at the same time. Other exchanges did not experience the same situation, something that shows that not all robots were so sure about what happened at Bitstamp.
At the moment, most of the virtual currencies are operating stable, which means that it did not affect the normal behavior of the market.