Arkham Refutes The Blames of 7% Bitcoin Price drop on Mt. Gox ALerts
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Arkham Refutes The Blames of 7% Bitcoin Price drop on Mt. Gox ALerts

written by John Murphy | April 29, 2023

Bitcoin witnessed a sharp drop of 7% in its price on April 26th only within an hour. This caused the price to drop from $29.850 to $27,789.

KEY TAKEAWAYS

  • Some believe the false alert issued by Arkham led to the crash in the price of Bitcoin.
  • While Arkham the blockchain analytics firm has denied all such accusations.

According to some media outlets, this crash could be a result of a false alert initiated by blockchain analytics firm Arkham Intelligence. They claimed that a huge sum of Bitcoin was shifted by wallets linked to Mt. Gox and the U.S.

Later Arkham made a statement refuting any involvement in the flash crash. They claimed that it was probably due to a bug fix the alert was sent. Moreover, the action affected only a small subset of the users. DB or Tier10k shared the news of false alerts on its accounts.

The drop was not the fault of Arkham

Arkham made a statement on Twitter only an hour later as a follow-up to the previous tweet. In the tweet, they denied all such accusations of their involvement in the Bitcoin price drop. Thus claiming that their alerts were sent accurately. According to their investigation, Arkham made the point that the subsequent drop that occurred between 19:17 and 20:01, could not have resulted from their alert.

An IT tech Twitter user also shared that there were no such transfers made from the wallets linked to Mt. Gox which leaves the cause of the flash crash unknown.

However, a Bitcoin address linked with the U.S. government’s Silk Road hack funds did show an inbound transaction. The transaction was worth $0.19, which was still processing at that time. No matter what lead to this crash, it was actually really steep and affected the crypto market in a brutal manner.

The flash crash pointed at liquidations worth of %211 million for crypto market participants. The Bitcoin traders accounted for nearly $97 million of these liquidations. Apparently, the CEO of Arkham Miguel Morel has yet to clarify the matter.