Arkham Denies Buggy Mt. Gox Alerts To Blame For 7% Bitcoin Price Crash

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Bitcoin (BTC) price plummeted by about 7% in just one hour, dropping from $29,850 to $27,789. This was due to blockchain analytics firm Arkham Intelligence accidentally sending a warning that the wallet was linked to Mt. Gox and the US government, reports the news outlet. I started sending a large amount of bitcoin.

Arkham at first murmured To confirm that the alleged mistake occurred as a result of a “bug fix” that sent erroneous alerts to a “small subset of users” in our analytics platform. The alert was then tweeted by the popular crypto news alert account DB or. Tier 10k.

[DB] Mt Gox and US Government Wallet Transactions: Arkham Alert

— Decibel (@tier10k) April 26, 2023

However, an hour later, Arkham released a follow-up tweet claiming that it had “investigated the status of the DB alert and determined that the Arkham alert was correctly sent in this case.”

After investigating the DB alert situation, we determined that the Arkham alert was sent correctly in this case.

DB set two alerts for all Bitcoin transactions over US$10,000 without setting a counterparty, naming the alerts “Mt Gox” and “US Gov”.

we… pic.twitter.com/8OITiygNhL

— Arkham (@ArkhamIntel) April 26, 2023

“Neither the alert nor the tweet could have caused the sharp drop in BTC price today,” Arkham wrote, noting that the drop occurred between 19:17 and 20:01 UTC, and the alert and subsequent tweet was then sent at 20:07 UTC and 20:08 UTC.

Additionally, according to data published by Twitter user IT Tech, there were no transfers from wallets related to Mt. Gox, causing a Bitcoin flash crash for reasons unknown to market participants at the time of writing. suggests that it may have

Fake news about trading with MT Gox wallet.

No activity ✅ https://t.co/IbZKrK7BJ9 pic.twitter.com/mdOZv4nzI4

— IT Tech (@IT_Tech_PL) April 26, 2023

According to data from blockchain explorer Blockchain.com, a Bitcoin address believed to be a wallet for the US government’s Silk Road hacking fund witnessed a transaction on April 26. to write.

Related: First Republic Bank Plunges Another 20% in Bitcoin

Whatever the cause of the flash crash, the sudden plunge in prices has wreaked havoc on the derivatives market, with crypto market participants now having over $211 million in total liquidations. Bitcoin traders accounted for about $97 million worth of these liquidations.