Dr. Doom says Bitcoin flash crash (-15% in 7 minutes) a ‘massive pump and dump’

Earlier this year, at the end of February, there was a famous conference call from Goldman Sachs with around 1,500 people. The people who participate in such calls usually have several million in investments that are managed by the investment bank and are therefore informed in advance before something big is imminent. This time it was about the Corona crisis.

Goldman Sachs analysts expected that, just as China had done in late January, Europe would lock into various regions due to the spread of Covid-19. Everyone who participated in the conference call was advised to sell their shares.

Two weeks later, around mid-March, global stock markets were down a good 30%.

So there are always a group of people who know in advance what will happen. As a small investor, you cannot compete with this type of whales.

Flash crash

You also have this phenomenon in the crypto market. Although the world of Bitcoin, Ethereum, XRP, Tether and all the other coins is still very small, there are already a few whales that have investment portfolios of hundreds of millions.

When these “whales” move their money, the market usually moves. This is also what many say happened last night when the entire crypto market was pulled down at an incredible speed in about 7 minutes. The phenomenon is also referred to as a “flash crash”.

Bitcoin, the best known and most dominant crypto in the market, fell 15% during that period.

5pm in California

Apparently, whales began to liquidate their Bitcoin positions in $ 2 million dollar blocks just as the clock struck 5pm in California.

Bitcoin then plummeted from $9,561 to $8,570 in just under 30 minutes, before climbing to $8,800, where it is still leveling off at the time of writing.

New York University professor of economics Nouriel Roubini, also known as Dr. Doom said on twitter that it was a “huge pump & dump” because of the crypto whales controlling about 90% of the market.

In late April, Dr. Doom also predicted the top 10 post corona trends. Massive whale scams were not included though.

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