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Did OKEx Contribute To Massive Fall of Bitcoin Price From $19K to $17K?

Last Updated on February 1, 2021 by Ope Quadri

Crypro traders woke up Thursday, November 26, 2020 to see the massive fall of Bitcoin price from over $19,000 to $17,301, indicating 10.33% fall in the last 24 hours, could OKEx withdrawal be responsible for the fall?

The latest BTC fall comes a few minutes OKEx, one of the dominant crypto trading platforms opened its gate for traders to make withdrawals after days of a lock.

OKEx had suspended withdrawals on Oct. 16 while one of the holders of the exchange’s private keys cooperated with an investigation led by authorities and was therefore unable to authorize transactions within the hot wallet system, days after CEO of Japanese conglomerate SoftBank Masayoshi Son hinted that bitcoin is hard to understand.

It announced the re-opening last week and announced its plans to launch a compensation and rewards program to say” thank you” to customers for holding out during the disruption.

But that seemed not enough for those who were unable to make some profits trading when the bitcoin price was favourable to traders.

At about 8:00 am UTC on Nov. 26, the withdrawals resumed leading into the massive withdrawal of bitcoin to other exchange.

And within minutes, the most valuable digital asset fell from the hilltop of over $19K to below $17,000 before settling on $17,301 at the time of publication.

Data of withdrawal on OKEx Massive in recent time

More data emerged Thursday that the large volume of withdrawal within minutes on OKEx was unprecedented.

Social media transaction trackers, Crypto Quan shows that “the first OKEx outflow after the withdrawal opening hit 2,822 BTC by the block time frame,” Mason Jang, the chief operating officer of Crypto Quant described it as “the year-high in the block time frame”.

Also, Crypto tracking service Whale Alert hinted that at least a couple of high-value transactions within an hour took place on the crypto trading platform

391,759 #OKB (2,097,235 USD) transferred from #OKEx to unknown wallet

Though analysts believe that $20,000 all-time highs aren’t easy to achieve, but the event on OKEx may have contributed to the dramatic fall.

After nearly hitting $19,500 on Wednesday’s trading, it pulled back to the current price.

Before the latest fall, CNBC host Brian Kelly and trader Tone Vays had already warned that the recent gains were due for a pullback, they predicted that bitcoin to reach as low as $14,000.

More pressure from sell-off

The sudden price drop might not also be unconnected to a large volume of deposits by traders to majorly to taking off profits as the price near $20,000 all-time highs.

We’ll keep you updated.

 

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