A Brazilian crypto trader found himself buying Bitcoin at a rate that was last seen in Dec 2017 when the price of BTC shot to almost $20K.
From an excerpt of the order book, the trader paid approximately 90 U.S dollars for 0.0047 Bitcoin (BTC). However, at the time of purchase, the same amount of Bitcoin was worth 15 U.S dollars on other exchanges.
This shows that the Brazilian crypto trader paid roughly 500 percent more. if the trader was to buy a full Bitcoin, then the price would have ranged between $19,000 and $19,600K.
The Brazilian crypto
trader was using a local exchange, TemBTC. In a phone conversation with a local
news outlet, Portal do Bitcoin, the exchange’s founder indicated that the
trader “was probably someone with little knowledge and who carried out the
order to market.”
From the exchange’s order book, it was established that other traders had acquired Bitcoin at the rate of between $10,000K and $16,000K before the Brazilian crypto trader mistakenly paid the huge premium.
According to Portal do
One possible explanation why this happened is that the user made a large market buy order that, due to the exchange’s lack of liquidity, eventually reached stratospheric value.
The Brazilian crypto trader’s mistake comes just as the crypto market is slowly pulling out of the bearish forces which have been plaguing the crypto market since 2018.
In the recent past, the
Brazilian cryptocurrency market has been growing but not without cases of
crypto platforms and banks colliding on whether to offer banking services. As reported
by CLN, the newly elected Brazilian president has proposed a crypto proponent
to head the country’s central bank.
Do you think the
Brazilian crypto trader represents a large number of traders who have been
making losses due to a lack of trading information?
Let us know your thoughts
in the comments section below.