Arkham Denies False Alerts, Blames User Error for BTC Price Drop
- The firm said the user who received the alerts had set up two alerts on BTC above $10k
- The information caused a sell-off in Bitcoin by as much as 7% in an hour.
Arkham, a data analytics firm, has denied sending inaccurate alerts that may have contributed to a sharp drop in the price of Bitcoin (BTC) on Wednesday, April 26. In a tweet on Thursday, Arkham stated that it had concluded an investigation into the matter and determined that the alerts were sent accurately.
The analytic firm said that the user who received the alerts, who goes by the online handle “DB,” had set up two notifications on all Bitcoin transactions above $10,000, with no counterparties set. Arkham clarified that it had fixed a bug preventing it from sending alerts on such configurations and that DB then correctly received many alerts based on his parameters.
Furthermore, Arkham stated that neither the alert nor the tweet DB sent about the alerts could have caused the sharp BTC price drop. The firm said that the decline occurred between 19:17 and 20:01 UTC on the given day, and the alerts and tweets were sent afterward at 20:07 UTC and 20:08 UTC, respectively.
The analytic firm concluded the update with the Binance CEO’s signatory “Ignore FUD, fake news, attacks” remark.
Notably, the price of Bitcoin fell sharply on Thursday, April 27, after a blockchain analytics firm supposedly sent out an alert that suggested that the US government had moved large amounts of Bitcoin.
The information caused a sell-off in Bitcoin by as much as 7% in an hour, notably from Jump Trading, a major crypto trading firm.