Single traders appear to still have an outsized influence on the bitcoin market.
Thus far in September, analysts have cited a single trader as the likely cause of two significant price movements, both of which point to liquidity problems in the nascent market. In a time when bitcoin markets are characterized by low trading volume and speculation, bitcoin prices have become vulnerable to the point where either a single buyer or one, large transaction can trigger sizeable shifts.
For example, on Sunday, 11th September, bitcoin prices plunged more than 5% in less than an hour, according to BPI data.
During just a half-hour session, the digital currency fell from $628.14 at 19:00 UTC to $595.43 by 19:30 UTC.
Here, analysts cited low trading volume and a highly speculative market when explaining this sharp drop, asserting that a single large transaction was likely to have helped fuel this decline.
Petar Zivkovkski, director of operations for bitcoin trading platform WhaleClub, for instance, believes the sell-off was likely the result of one player.
He told CoinDesk:
“The current market environment is illiquid, making price susceptible to larger players with larger firepower. In this