Peter Brandt Criticizes Kraken After Flash Crash to $8,200 BTC/USD, Gives F-Minus Report Card Grade
Peter Brandt, a recognized cryptocurrency analyst, and chartist criticized the cryptocurrency exchange Kraken for a fast crash that Bitcoin experienced in this platform. Bitcoin (BTC) fell from ~$8,720 to $8,200 in just a matter of seconds and recovered its price immediately after.
Peter Brandt Criticizes Kraken for Bitcoin’s Flash Crash
Bitcoin seems to have experienced a large flash crash from $8,720 to $8,200 and come back to the same price from where it dropped immediately after. He wrote on Twitter that exchanges have to provide order and liquidity but without regulation, it seems that nothing is able to keep them away from manipulating prices. Mr. Brandt has also requested a public statement from the company.
He went on saying that he trades on Kraken and that virtual currency users do not want regulatory oversight. However, these Bitcoin and crypto maximalist claim that adoption is growing and that institutions are entering the space. However, this is not going to happen any time soon, according to him.
I trade through Kraken. Most of you are missing my point. Cryptomaniacs do not want any regulatory oversight yet chime the mantra "adoption … adoption … adoption." Institutional involvement will not develop when the wild west exists.
— Peter Brandt (@PeterLBrandt) May 28, 2019
Another user called @ThinkingDeribit shared a graphic of the Chicago Mercantile Exchange (CME) Bitcoin futures in which there are clear price fluctuations and periods without trading activity. Compared to spot markets, the CME doesn’t operate during the weekend, generating price gaps during Saturdays and Sundays.
— ThinkingKMD (@ThinkingDEX) May 28, 2019
This is a regulated market that operates with higher standards than spot markets that do not have clear rules in how they operate and how they are regulated. Nonetheless, these things happen and affect both markets.
Kraken is currently the 44th largest digital currency exchange in the market with more than $244 million in trading volume according to CoinMarketCap.