The crypto market saw a sharp dive today. Did you know that this was a market reaction to a false Arkham alert about transactions being made by Mt. Gox and US gov. wallets?

Hi everyone,

We saw some hours the crypto market dumping for some unknown reason. I'll try to explain in this post how this happened. For people that are not familiar what Arkham is: It's a simplified blockchain explorer where everything is very organized and you can check transactions very easiliy.

First of all someone posted on Twitter that there was a Arkham alert that some Mt. Gox and US government wallets being active.

This was the Tweet:

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Tweet @ tier10k Arkham alert

After that Bitcoin went from $29k to $27k and other cryptocurrencies followed. After some minutes passed by there were no on chain activity to been seen from these wallets. But after a while it was clear it was false alarm.

A Tweet explained what happened:

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Tweet @ tier10k false Arkham alert

So there was a bug fix in Arkham that caused an alert about some blockchain movement from Mt. Gox and US government wallets. It's crazy to think that an alert can create such panic selling! At this moment we did not recover fully since Bitcoin is still at $28.2k.

What do you guys think about this situation?

Source:

1. Twitter @ tier10k
2. Arkham