Bitcoin’s (BTC) price crashed by over 20% within an hour to register the biggest market sell-off since May. The price of the top cryptocurrency fell to a new monthly low of $43,685 even though BTC was targeting $53K earlier in the day. BTC has recovered nearly $3K from yesterday’s fall and currently trading at $46,657.
Along with Bitcoin, the rest of the crypto market also registered a similar price swing downwards, falling in double digits. While overleveraged markets were predominantly blamed for the flash crash as well as a glitch in Chivo wallet, the national Bitcoin wallet for El Salvador.
Later, Coinbase revealed that the US SEC has threatened them over their stablecoin lending product creating more panic in the market. However, now a new and wild theory is doing the rounds that blame Michael Saylor and MicroStartegy for the dip. A crypto Twitter handle that goes by the name of “Mr. Whale” claimed that Saylor-led MicroStrategy that holds over 1,000 Bitcoin on their balance sheet have started to dump on the market.
The handle claimed that Saylor purposely asked everyone to buy more Bitcoin at $51K knowing his company is going to sell. In an earlier tweet dated 5th September the crypto handle had claimed that Saylor is working on a Bitcoin exit strategy. He alleged that the Fortune 500 company has transferred over 92K Bitcoin to a shady LLC via which they plan to sell without reporting it to the SEC.
Same day Michael Saylor urges everyone to buy #Bitcoin, the price dumps by over 20%
Probably just a coincidence… https://t.co/IL1bX9ptfm
— Mr. Whale (@CryptoWhale) September 7, 2021
Is MicroStrategy Really Dumping Bitcoin?
The wild accusations seem to be based on an uncredited report and it is also important to note that the Twitter handle in question is a known FUD maker. He has also fueled the Bitcoin USDT manipulation theory and jumped on the environmental debate during Musk’s battle with Bitcoin proponents.
MicroStrategy, on the other hand, has given no indication that it plans to sell its BTC holdings, on the contrary, Saylor during the May sell-off reiterated that he has no plans of selling Bitcoin anytime soon while answering a direct question about dumping BTC.