Bitcoin Plummets as Coordinated FUD Campaign Sparks Liquidations
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In a wild turn of events, the king of cryptocurrencies, Bitcoin, took a nosedive on Friday, crashing down to $26,000. Since then, it has been struggling to reclaim its throne above the $26,500 level. What’s behind this unexpected tumble, you ask?
Well, it seems that a coordinated campaign of fear, uncertainty, and doubt (FUD) has wreaked havoc on the market, triggering a frenzy of liquidations. But hold your horses, because there’s more to this story than meets the eye.
It turns out that the culprit behind the recent chaos in the crypto world is none other than an infamous Twitter account, Whale Chart. This account has gained notoriety for its knack for publishing “fake news without sources.” According to the sharp-eyed analysts at CryptoQuant, Whale Chart has been instrumental in spreading false rumors about the US government selling its Bitcoin.
🚨 US Gov is selling Bitcoin pic.twitter.com/KXgfEpQBGv
— whalechart (@WhaleChart) May 10, 2023
US Government’s Bitcoin Holdings Remain Intact—Uncle Sam HODLs On
Contrary to the baseless claims propagated by Whale Chart and its cohorts, the US government has not parted ways with any of its precious Bitcoin. In fact, Uncle Sam is currently sitting pretty as one of the largest Bitcoin holders in the world.
The government’s on-chain balance, as meticulously tracked by Glassnode, stands at an impressive 205,514 Bitcoin. This balance has remained untouched in recent days, except for a little spring cleaning back in March when they sold off 9,861 BTC seized from Silk Road. But they announced it publicly a few weeks later.
CryptoQuant, ever the number-crunching wizard, reports a slightly different figure of 204,013 BTC for the government’s Bitcoin stash. Nevertheless, both Glassnode and CryptoQuant confirm that Uncle Sam hasn’t been playing fast and loose with his Bitcoin lately.
Market Panic and Massive Liquidations
The spread of these outlandish rumors didn’t just ruffle a few feathers; it sent shockwaves throughout the entire cryptocurrency market. Investors, driven by fear and uncertainty, hit the panic button, resulting in a staggering $150 million in liquidations within a single day. The total crypto market cap also took a hit, plummeting by a whopping $40 billion.
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