Crypto bulls received a wake-up call this morning after spending the last week in what seemed like a dream – Bitcoin (BTC) was up as much as 32.2% since last Friday during late Wednesday trading, briefly breaching the $8,300 price level. Overnight Thursday into Friday, however, the price of BTC fell 11.52% from its intraday high of $8,035.96 to a low this morning of $7,110.08. The broad crypto market is falling alongside BTC today with nearly every major coins lower by double digits over the last 24 hours. Still, all top 20 cryptocurrencies by market capitalization, with the exception of stablecoin Tether (USDT) and forked coin Bitcoin SV (BSV), are higher by double-digits over the last 7 days.
Many are speculating that the overnight selloff of broad cryptocurrencies could have been initiated by a massive sell-order on major crypto exchange Bitstamp. A sell order for 3,645 BTC on Bitstamp, worth about $26.8 million, was executed on May 17th at roughly 10:00 PM EST and was immediately followed by a decline in the BTC price. The selloff may have been further exacerbated by an elevated number of placed stop-loss orders by traders due to the recent, robust crypto rally. Once BTC’s price started falling and stop-loss positions began to initiate, further panic may have been invoked among general crypto traders.