Bitcoin Plunges 5% to $26K: Fake News, Congestion and Uncertainty to Blame?

• A flash crash was triggered by fake news about the alleged sale of 9,800 BTC by the U.S. government.
• Uncertainty and bearish market patterns have caused fear among traders that Bitcoin may crash to $25,000.
• Blockchain congestion and rumors of Grayscale’s debt have added complexity to the already tumultuous environment.

Fake News Triggers Flash Crash

A flash crash was triggered by fake news about the alleged sale of 9,800 BTC by the U.S. government on Wednesday, May 10th. This caused a deep pullback in Bitcoin prices from as high as $28,317 to below $26K within minutes.

Uncertainty and Bearish Patterns Fuel Market Dump

Uncertainty is currently quite high in the Bitcoin and crypto market due to liquidity problems caused by regulatory uncertainty and departure of Jump and Jane Street from the U.S. crypto market which has led to higher volatility as larger buy and sell orders move the market faster. Additionally, fear is mounting among traders that a bearish head and shoulders pattern on Bitcoin’s 1-day chart may signal a crash to $25,000.

Blockchain Congestion And Grayscale’s Debt Rumors

The clogging up of Bitcoin’s blockchain due to influx of Ordinals and BRC-20 meme coins is causing confusion in the market with some perceiving them as a distributed denial-of-service (DDoS) attack adding further complexity to an already tumultuous situation for Bitcoin investors. Furthermore, Grayscale is being hotly debated because DCG allegedly owes bankrupt crypto lender Genesis Trading about $575 million in May with loans coming due next week leading traders to speculate that Grayscale may be selling something on Coinbase soon in order to cover its capital needs for repayment of its loan obligations..

Crypto Market Remains Volatile

Given all this uncertainty surrounding Bitcoin it is not surprising that at present there is no clear direction for where it will go next aside from remaining highly volatile at least in the short term future until more concrete developments occur or unless new information comes out concerning any one or more of these matters mentioned above affecting prices either positively or negatively depending on their nature..


In conclusion while good news on Wednesday drove up prices briefly before fake news hit leading to a flash crash it remains uncertain what direction Crypto markets will take aside from its inherent volatility going forward given all these complexities clouding over decision making processes for investors right now making it difficult if not impossible for anyone to confidently make predictions during such times as these