The graph from https://bitcoinwisdom.com/markets/bitcoinde/btceur is remarkable (see screenshot below). What happens there at the German marketplace bitcoin.de? BTC sells for 5,000+ EUR continuously :-O Are we all gonna get rich selling there?!?

We all know these flash crashes

where you have a single thin line shooting to the ground before the price is going back to normal in a matter of seconds. Commonly known as Fat Finger Trade. Someone accidentally sells a huge number of coins at market order (instead of limit order), wiping out the orderbook.

Does the same work in the opposite direction as well? Most certainly. Although I have to admit to hear about flash crashes fairly often, but nothing about “flash explosions” or however you wanna call it.

“Flash explosion”?

Fact is, Bitcoin sold for exorbitantly high prices on the marketplace bitcoin.de. The highest was 5,148 EUR (approx. US$ 5,890) – double the current market price. That is undeniable and that is… crazy!!

So what's the story here?

Once again, we can only guess. One thing is for sure. You will not become rich when transferring your newly bought Bitcoin over to bitcoin.de and selling there, although the 5,000 EUR price appears repeatedly.
Bitcoin.de is not a traditional exchange like Bittrex or Kraken. A BTC/EUR price of 5,000 EUR does not mean, that the entire orderbook has been cleared until reaching to that peak and everyone on the way up made hilarious profits. No, bitcoin.de is a marketplace. Buyers and seller meet through the marketplace, agree upon a price, and then exchange coins vs. cash through the escrow service provided by bitcoin.de. It is an individual trade, like Buy It Now on eBay.

Apparently the most likely scenario seems to be, that two or more individuals find it extremely funny to show the world where they expect Bitcoin to go over the next couple of months. They paint the graph like they please it. To do so they place a very small sell order for double the current market price and a second account buys that specific order. As a result the graph shoots a spike to moon.

Source: pixabay.com

The result looks like the back of a Dimetrodon dinosaur (picture). Unlike what happened to the dinosaurs, I believe these trolls are correct. We see prices of BTC climbing well over 5,000 EUR instead of an event of extinction. At least most hope so. Wonder what kind of art people produce next with the bitcoin.de chat.

Do you have an alternative explanation?