An unconfirmed tweet caused a $288 billion fall in bitcoin market value today

[Leviathan.007]

An unconfirmed report from the US Treasury Department that several financial institutions laundered money with cryptocurrencies caused prices to fall in the cryptocurrencies market.
According to U.Today, bitcoins hit $ 51,000, and altcoins suffered even more severe losses.
The title that apparently caused the crash was posted by a mysterious Twitter account called FXHedge.
The tweet cut $288 billion in cryptocurrencies market volume within 54 minutes of publication. At the time of writing, the tweet has received more than 4,700 likes, despite citing an anonymous source and disabling comments.
Jake Chervinsky, general counsel at Compound Finance, wrote that he does not consider the tweet valid because the money laundering cases are under the jurisdiction of the US Department of Justice. He added that the simultaneous accusation of several financial institutions was "unusual".

* It should be noted that FXHedge has a history of false claims before.

Source: https://u.today/this-tweet-just-erased-288-billion-from-crypto-market-cap?amp

The tweet: https://twitter.com/Fxhedgers/status/1383611847144730626

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[avikz]

I don't think just one anonymous tweet can bring down the entire cryptocurrency market in such a way! Especially when the allegation is quite normal and nothing out of the box. Every government says that cryptocurrencies are being used for money laundering but it never hurt the market in such a major way.

Is it too hard to think that profit booking is happening after the meteoric rise in prices since last few weeks? Also a day ago Turkey banned cryptocurrency as a method of payment. This news might also have contributed to the fall.

One tweet from anonymous source is too hard to believe!

[joniboini]

I personally believe that some traders took that seriously, we've seen something like this multiple times in the past. It's a very good strategy to wipe out retail traders and allow big players to make a better entry for the next leg up. Whether this is a controlled scenario or not, nobody knows for sure.

In addition to this, the news about Coinbase team selling nearly $300 million of their shares might be related to this drop too.

[cryptomaniac_xxx]

This is a classic FUD to begin with, but we may be very well see who are those going to be charge for money laundering. And yeah, when we hear this kind of news, we can say that there are people who are going to panic or justify their sell off because of this negative news. So let's wait till the dust settled, if there some semblance of trust, or just individual's trying to bring the market down again.

[ILuckyGuyI]

Really? Is this the thing caused Bitcoin to drop down at a very high rate? You say that the source is not verified. Then, how can it have an affect on Bitcoin like this? I don't know, it doesn't make sense, in my opinion.

[Jating]

We already have the China issue in the last few days that might have started the dip, a reported fire or something in the province of Xinjian, in which there are a lot number of miners, but we're seems to be stable around $60k-$62k.

And this this so called 'unconfirmed tweet', we also have the Coinbase insider selling, there's so many news right now that we can't pinpoint the exact reason for the massive liquidation today. But in any case, it seems that the market hasn't learn, a single tweet really cause this one?

[arwin100]

An unconfirmed report from the US Treasury Department that several financial institutions laundered money with cryptocurrencies caused prices to fall in the cryptocurrencies market.
According to U.Today, bitcoins hit $ 51,000, and altcoins suffered even more severe losses.
The title that apparently caused the crash was posted by a mysterious Twitter account called FXHedge.
The tweet cut $288 billion in cryptocurrencies market volume within 54 minutes of publication. At the time of writing, the tweet has received more than 4,700 likes, despite citing an anonymous source and disabling comments.
Jake Chervinsky, general counsel at Compound Finance, wrote that he does not consider the tweet valid because the money laundering cases are under the jurisdiction of the US Department of Justice. He added that the simultaneous accusation of several financial institutions was "unusual".

* It should be noted that FXHedge has a history of false claims before.

Source: https://u.today/this-tweet-just-erased-288-billion-from-crypto-market-cap?amp

The tweet: https://twitter.com/Fxhedgers/status/1383611847144730626

This is the strategy of the manipulator they want to spread fear so that they can see bitcoin dump and people will be panic to dump it more, for sure those whales are now preparing to buy now at the lowest point of this since after this fud get away they will be lucky again counting their winnings for this current market bad days. Maybe people should be calm since as you said its unverified so people should not dump so that they will not lose their money for this incident.

[DaveF]

If you look at that persons tweets I would put it in the same pile as any other random person tweeting.

For those of you out of the US who don't know, your 1st quarter estimated tax payments were due April 15th .
So you had to have your check for taxable capital gain profits in the mail by Thursday.

Some people may have played the game of writing and mailing the check on Thursday knowing they could sell though yesterday on Coinbase / Geminin / a few other places and have them ACH the funds to your checking account, so when the IRS deposits the check early this week it's covered.

Technically it's illegal since you are not supposed to mail checks that do not have the funds to cover them. In reality, it happens a lot.

Add that to a bunch of people just taking profits and you have a big drop.

Just my opinion. Not financial advice.

-Dave

[virtualdn]

Some people want to get your valuable BTC for cheap. If you fail into this trap it's your own fault and not someone's else. Be wise and don't take the FUD.

Tweeting in CAPS seem very legit to me. LOL.

[Twinkledoe]

This is a classic FUD to begin with, but we may be very well see who are those going to be charge for money laundering. And yeah, when we hear this kind of news, we can say that there are people who are going to panic or justify their sell off because of this negative news. So let's wait till the dust settled, if there some semblance of trust, or just individual's trying to bring the market down again.

I don't think an unverified tweet will make bitcoin fall continuously. We have seen that bitcoin has very stronghold at around 50k. The tweet may have contributions to this sudden drop but I believe it is already combination of various factors. Maybe, it is already time for correction. Curious if bitcoin will fall below 50k and go down to 40k. Maybe, it is the time to buy btc, for those who are wishing for btc to go down. This is the time you're waiting for.

[vapourminer]

If you look at that persons tweets I would put it in the same pile as any other random person tweeting.

For those of you out of the US who don't know, your 1st quarter estimated tax payments were due April 15th .
So you had to have your check for taxable capital gain profits in the mail by Thursday.

Some people may have played the game of writing and mailing the check on Thursday knowing they could sell though yesterday on Coinbase / Geminin / a few other places and have them ACH the funds to your checking account, so when the IRS deposits the check early this week it's covered.

Technically it's illegal since you are not supposed to mail checks that do not have the funds to cover them. In reality, it happens a lot.

Add that to a bunch of people just taking profits and you have a big drop.

Just my opinion. Not financial advice.

-Dave

pretty risky although i can see the appeal of waiting and cashing cap gains taxes out as late as you can. if corn goes up you win, goes down, you lose.

me, when i cash an amount out i always cash out an extra 15% or so and set it aside as fiat somewhere. boring, yup. but that way i know i have the quarterly payments.

[bryant.coleman]

Well.. the momentum was building for quite some time and the tweet just acted as the trigger. Reptilian overlords Janet Yellen and Elizabeth Warren were going ballistic a few weeks ago, asking for greater regulations and a "crackdown" on unauthorized transactions. Also, nowadays Kamala Harris is making most of the government decisions since Biden's health is not that good. Biden's term is going to be difficult for the cryptocurrency sector and we can expect more and more hostile actions from the government in the coming months.

[btc-room101]

An unconfirmed report from the US Treasury Department that several financial institutions laundered money with cryptocurrencies caused prices to fall in the cryptocurrencies market.
According to U.Today, bitcoins hit $ 51,000, and altcoins suffered even more severe losses.
The title that apparently caused the crash was posted by a mysterious Twitter account called FXHedge.
The tweet cut $288 billion in cryptocurrencies market volume within 54 minutes of publication. At the time of writing, the tweet has received more than 4,700 likes, despite citing an anonymous source and disabling comments.
Jake Chervinsky, general counsel at Compound Finance, wrote that he does not consider the tweet valid because the money laundering cases are under the jurisdiction of the US Department of Justice. He added that the simultaneous accusation of several financial institutions was "unusual".

* It should be noted that FXHedge has a history of false claims before.

Source: https://u.today/this-tweet-just-erased-288-billion-from-crypto-market-cap?amp

The tweet: https://twitter.com/Fxhedgers/status/1383611847144730626

Sheesh it was only three years ago that BTC dropped from $20k to $6k in a few days, I remember well this site was in denial the first 1/2, to $10k, then to $5k

Now today we see an 8% decline and people are panicking

This is all normal, I'm rather sure we'll see a reversion to $20k in the coming days, and why not? You all know that Musk bought billions, ... you really think all those billionaires are going to see their paper profits evaporate, the little guys the HODL'rs are the bag holders.

The Musk people bought BTC on the rise, the profits cover their losses just like DeLorean bought cocaine years ago to cover his car biz. All these corporations now must sell before their paper-btc profit becomes a loss.

Hodl on, because we would all hate to see Musk go bankrupt.

Then we all know that the price will find bottom and climb again.

Look lots of alt's are down -25% today, so BTC looks really good.

USA stimmy checks are rather not coming anymore, so where is all this new money going to come from??

I find this arg funny, lots of people are saying that FXhedge has an excellent track record, and for that matter all GOV has to deny the leak. The announcement is a great cover for insiders. Having gone public, it covers gov insiders so they can sell prior to the 'confirmed'. As to the story, there is always at any given time GOV investigations into BTC, so this tweet was true yesterday, today, and tomorrow.

The fall just shows how perishable that BTC really is, its really a house of cards, that can be blown down by the slightest worry by the chattering classes.

BTC has gone parabolic in the last six months, so profits had to be taken, nothing that goes parabolic ever stays in the clouds very long. Nothing.

Other than stimmy checks there is no reason for DOGE to be up 300%, the entire crypto space has gone insane, not just BTC.

But this is all just like 3 years ago, the first response to a BTC collapse is always denial

[nelson4lov]

While the tweet fud from FXHedge fueled the dump, I want to add that the market was due for some correction already. Everything (including RSI indicator) has been screaming overbought for the past few days to a week. The funny thing here is that most traders saw the signals that indicated a possible market correction and ignored it only to keep buying and opening new positions.

Well.. the momentum was building for quite some time and the tweet just acted as the trigger. Reptilian overlords Janet Yellen and Elizabeth Warren were going ballistic a few weeks ago, asking for greater regulations and a "crackdown" on unauthorized transactions. Also, nowadays Kamala Harris is making most of the government decisions since Biden's health is not that good. Biden's term is going to be difficult for the cryptocurrency sector and we can expect more and more hostile actions from the government in the coming months.

Exactly my point. Market has been itching for a correction and that tweet gave it all the gas it needed to get started. If news like this one keeps coming, we might be heading untoa bear market sooner than later.

[LFC_Bitcoin]

It’s just a correction in a bull market, sure it can make you panic for a short while but it’s nothing we haven’t seen before.

See below a chart detailing all the significant dips during the 2017 bull run to $19,xxx



We’ve flushed out some weak hands, bitcoin’s are transferred to stronger hands & off we go again. Another new ATH within 6 weeks, no problem.

Have a great day

[kryptqnick]

It could somewhat contribute to the current price situation, but I agree with those who don't believe that it was the only cause. After all, it's not only just a tweet with unconfirmed information, but the tweet also got less than 10k likes and reposts, so it's hard to call it highly influential. Some people could take it seriously, others could start selling because of seeing that some people were already doing it. And there's also the factor of a natural price correction that comes after a period of the price remaing around the ATH level. The support for $60k is still quite weak, so the price keeps falling down a little once in a while.

[nikolastech]

They know for having fake tweets before, why would anny body trust them i don't get it

And if it is true so what if some financial institutions use cryptocurrencies to launder money . They will get a fine and then its over. Always goes that way, we seen it many times before in banking system. Nothing happens. Its buy the dip always is,

[tomahawk9]

about the dip, i'm hearing a bunch of things, that it was caused by:

1) FUD coming from china and also some kind of power outage (which is awful for miners and hash rate) that's been going on in some cities over there for a few days now. 2) Whales manipulating the market, and 3) this damn tweet...

honestly, who cares? just buy now (it's a flash sale) or hodl your coins. To those who bought at 51k, bravo and props to you 👍 To those who sold, thanks for the cheap coins, now gtfo, you don't belong in this market, you weak-hand dummy. 🤲💎

[Fundamentals Of]

A mere tweet trimming $288 billion down from Bitcoin? Not possible at all, especially because it is about the same old issue of money laundering. Why does this tweet even matter? If somebody unknown would tweet that Bitcoin is used for money laundering, buying contrabands, paying for illegal services, etc, I don't care anymore. That's a very old issue. I won't ever be selling a satoshi for that recycled crap.

[bL4nkcode]

Then, how can it have an affect on Bitcoin like this? I don't know, it doesn't make sense, in my opinion.

It does make sense, this is common on cryptocurrency the only difference is the numbers on how the price pump or dump.

This is when there is fud, fomo is a big thing for shorters/day traders. While bitcoin is on the pump or dump, domino effect for alts possibly happens.