3 Hours of Weirdness: Jump Trading Transactions, Bitcoin Slump, and False US Govt Alert

Starting from around 19:00 UTC on April 26th, Bitcoin suffered a sharp slump, dropping more than $1,000 within an hour, trading below $27,500 at a time. About one hour before the crash, crypto market maker Jump Trading moved $26.6 million worth of Bitcoin to multiple exchanges, $23.7 million of which were deposited to Binance. These transactions may be related to the following slump.

But the story doesn't stop here. At 20:08 UTC, the famous crypto news account on Twitter, db, tweeted that Mt. Gox and US Govt wallets were making transactions, according to Arkham's alert. The report quickly drew attention from the crypto community. However, some blockchain analysts found that the mentioned wallets had no activity at all. Over an hour later, Arkham, a blockchain analytics firm, clarified that the false alert db received was caused by a bug fix.

When the crypto community criticized db and Arkham for misleading the market with fake information, Arkham made a new response, saying that the alerts were "sent accurately":

"db set two alerts on all Bitcoin transactions above $10k USD, with no counterparties set, then named the alerts 'Mt Gox' and 'US Gov'. When we fixed a bug causing us to not send alerts on configs like this, he then correctly received many alerts based on his parameters. No one received inaccurate alerts, they simply began receiving the alerts they had previously set.

"Neither the alert nor the tweet could have caused the sharp $BTC price drop today, as the drop occurred between 19:17 and 20:01 UTC, and the alerts and tweet were sent afterwards at 20:07 UTC and 20:08 UTC respectively."

According to coinglass' data, the total liquidation of the crypto market over the last 12 hours exceeds $262 million. Now, the price of Bitcoin bounced back to above $28,800.

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