Newbie: What are those mysterious spikes?

[coinmaster2004]

Hello,

I have noticed those spikes in all stable coins (sometimes with more insane prices > $1.5)

Example:
https://imgur.com/a/aZdPN1q

Looks that a big amount of money is traded for an illogical price for a stable coin

Can anyone explain to me what are those spikes?

Thank you

[Bitcoin_Arena]

The secret is in the trading volume. As in the example you gave take note of the trading volume. There was a spike in it as well in the amount of USDT traded



The most common theory in the crypto market is that a whale perhaps decided to buy DAI (sell off the USDT they had) sweeping off all the cheaper small DAI Ask orders in the order book. If you have a closer look at the order book. You will notice that the ask and bid orders for DAI are actually small for a whale who wants to trade off $10 M worth of USDT at once.

At that particular time the volume of DAI traded was $10M. Now that's massive for a trading pair whose 24-hour trading volume can be around only $5M

[Coin_trader]

In addition to the input above. The liquidity on the order book didn't meet the market order size of that certain whale trader that's why it result to spike that far from the pegged price of that stablecoin. It always happens when a whale wants to convert quickly to stablecoin. I believe the whale is taking profit from BTC and that spike is due to 1 or 2 whale only because that is market order type.

[Tytanowy Janusz]

I have noticed those spikes in all stable coins (sometimes with more insane prices > $1.5)

This 1.5$ is "Fat-finger error". Whale wanted to dump 100 000 and dumped 1 mln by mistake. It may also be a bug in algo trader code (most likely triangular arbitrage).

According to this 1.03 $ on binance. I guess that a 10 million $ whale wanted to do fast swap.

[Dutchyyy]

These are temporary liquidity shortages leading to price spikes. Literally, in a matter of seconds, the price could jump/drop and then the market (hungry bots) corrects it. I don't believe humans can catch it, only some software.

[cryptoaddictchie]

Maybe that's happened on a very rare occasion. Those trading stablecoin can profit with a really low risk but don't expect a gains from it. That spike isn't real surely the above mentioned details did it.

I wonder how much profits will those whales gains but this is a good trading potential if you have big funds to spend on using here.

[Davian144]

Hello,

I have noticed those spikes in all stable coins (sometimes with more insane prices > $1.5)

Example:
https://imgur.com/a/aZdPN1q

Looks that a big amount of money is traded for an illogical price for a stable coin

Can anyone explain to me what are those spikes?

Thank you

What exchange did you find it in? because I saw the spike as just a surprise to lure traders on the exchange, because USDT and DAI are both stable tokens even though it doesn't seem logical for stable tokens like USDT and DAI.

[YOSHIE]

Spike against Altcoins/stable coins, often associated with the current spike against Bitcoin, but corrections that are mostly commonly discussed, sometimes there are also when Bitcoin goes up Altcoins down this correction is not always true.

But in general terms, there are many people who think that it can be said that the soaring price of Bitcoin from one side can affect Altcoins, What you need to know is what happened last year is not necessarily the same next year, for sure Bitcoin and Altcoin have a relationship in the crypto market with fiat money being traded.

The conclusion: at a time like now Bitcoin is going up, altcoins are also going up in this case, the reason fiat money as I said above is circulating this kind of phenomenon usually occurs when there is a big wave of adoption in the market, Long story short Bitcoin is the economic heart of the crypto market around the world, of course there must be an influence on Altcoins, so don't be surprised by this kind of phenomenon.

[btcsmlcmnr]

They are spikes but the changes are not big (about 3% higher or lower than $1 for one stable coin). If you consider stable coins as altcoins (they are altcoins indeed), if one trader has big demand (big enough to create a spike), and accept a temporary loss of 3% to buy or sell, that trader can create those spikes. They may see a crash of another coin and think they can get 10 or 20 percent in profit so they accept 3% loss when buying or selling stable coin.

It is very popular with shit altcoins, when signals from scam groups are released, some greed traders can create spikes if they buy up too much and don't slowly accumulate coins.

Stable coin spikes are smaller than spikes of shit altcoins. They are stable coins.

[RealMalatesta]

It is obvious that some person did a bigger deal than there were money liquidate available. Sometimes there is only a certain amount of trade available in an exchange and you end up buying or selling way more than available, and do this on the market price button as well, which means if it is possible you would reach as high as 10 dollars instead of 1 dollars if you have to until your order is fully covered, and that is why these happen.

I have seen these in almost any coin, I have once saw a 700x increase and drop in some who knows what it was coin that was but I remember it reaching 700x, that was horrible for whoever bought it at those prices, but dude just bought at market price with a lot of money so it was his mistake. Same happened with ETH few times, some rich person sold all the ETH he has, a lot of money as well, and in return the price dropped to few cents, because he sold so much and there weren't any buyers.

[bitkanu]

What exchange did you find it in? because I saw the spike as just a surprise to lure traders on the exchange, because USDT and DAI are both stable tokens even though it doesn't seem logical for stable tokens like USDT and DAI.

When there's no a lot of sell orders in the market and the whales wanna try to buy a lot of USDT and it might give a pump to the price of USDT will be above $1.
That will be always happening when the whales wanna try to buy all of the orders instantly without trying to do that slowly. that's a common thing that's happening in the cryptocurrency.

[coinmaster2004]

Is it possible that someone just traded a very small amount with the wrong price?

E.g. Buying 10 TUSD for $15

It will still show as a spike in the candle chart, regardless of volume.

Am I correct?

[exstasie]

Is it possible that someone just traded a very small amount with the wrong price?

E.g. Buying 10 TUSD for $15

It will still show as a spike in the candle chart, regardless of volume.

Am I correct?

Nope. If you look at the order book, an order like that wouldn't move the price even $0.0001.

On that one hourly candle that spiked to $1.0333 in the OP's screenshot, there was $1.73 million traded. That's what caused the spike. Somebody holding a lot of DAI wanted out of the market fast.

[coinmaster2004]

Correct me if I am wrong, but this is total volume for 12 hours.

What if most of the volume are trades in normal price (~$1), and ONE small trade is the spike? (=$1.03)

Since the "high" part of the candle is NOT THE AVERAGE price but the HIGHEST one, it will still show there.

...or not?

Is it possible that someone just traded a very small amount with the wrong price?

E.g. Buying 10 TUSD for $15

It will still show as a spike in the candle chart, regardless of volume.

Am I correct?

Nope. If you look at the order book, an order like that wouldn't move the price even $0.0001.

On that one hourly candle that spiked to $1.0333 in the OP's screenshot, there was $1.73 million traded. That's what caused the spike. Somebody holding a lot of DAI wanted out of the market fast.