The drop of Bitcoin, the largest cryptocurrency by market cap, over the past couple of weeks has triggered a lot of bad responses and even chaos among traders. The leading digital currency fell to nearly one-month low prices on Sunday, before rising 4% in a matter of seconds.
After surging 4.2% in a matter of seconds, the Bitcoin price was seen trading at $6,458, after which it stabilized at $6,393 with a 3.4% gain. However, the question that many people are asking is whether the Bitcoin price reversal was initiated by a so-called ‘Bitcoin whale’.
Now, if we go back and see the sharp and sudden reversal, we can see that it also raised the specter of a more continuous downturn in the near future. The $1,000 correction that occurred in just 24 hours is a strong signal that the bearish forces still control the market.
Even though many analysts and rumors were pointing to Goldman Sachs and their abandoned plans to launch a crypto trading desk as the main reason for the sharp drop in the price of Bitcoin, the rumors were proven false.
According to current investigations, the $800 million worth of Bitcoin and Bitcoin Cash which were later moved to Bitfinex and Binance, two leading digital currency exchanges, likely belong to Dread Pirate Roberts, who is a former Silk Road administrator and Mt. Gox user who has been dormant for the past 4 years.
That said, the wallets associated with Mt. Gox have undergone a slow and gradual liquidation by Nobuaki Kobayashi, who is the so-called ‘Tokyo Whale’ in this case, tasked with offloading all the remaining assets of the now-defunct exchange. So far, Kobayashi has sold hundreds of millions of dollars on behalf of the Mt. Gox creditors – but also has billions more to offload.
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Cameron And Tyler Winklevoss: It’s Bitcoin’s Bottom Of The First Inning
"We still think it’s the bottom of the first inning."The Winklevoss twins first invested in bitcoin back in 2013 and they said that at first bitcoin didn’t sound like a good idea but after a few tequila shots it started making sense. Now, they have about 1 percent of all bitcoin outstanding. The twins reportedly plowed millions from their settlement with Facebook into bitcoin of course. After they saw that the investment balloon will be estimated for billions of dollars, they claim to have taken away the sting from having Facebook kidnapped from them. The Wall Street Journal apparently asked them what happens when the twins meet with Zuckerberg at a crypto conference and the twins answered:
“Welcome to the party, what took you so long?”Regarding Libra, Facebook’s cryptocurrency is looking less as a cryptocurrency. David Marcus who works at the development center for Libra reportedly wrote to the lawmakers:
"We want, and need, governments, central banks, regulators, non-profits, and other stakeholders at the table and value all of the feedback we have received.”Meanwhile, the policymakers have a hard time to understand and to find a way how to handle Libra but they can’t stop bitcoin at least not anymore. Cameron and Tyler Winklevoss noted:
"To shut down bitcoin you have to shut down the internet...like North Korea. Countries will have to play with it."As per the coming altcoin news, the twins see future where Zcash and Ethereum will have a very important role mainly because of their privacy features. As for Gemini, the competitive landscape is only warming up. Poloniex, for example, allowed purchasing cryptocurrency by using credit and debit cards, Binance is coming to the United States and CEX.io also opened a new US office.
ECB Official Warns: Libra Could Be Very Dangerous Without Rules
‘’It’s out of the question to allow them to develop in a regulatory void for their financial service activities, because it’s just too dangerous. We have to move more quickly than we’ve been able to do up until now.’’The entire ECB executive board believes that digital currencies will represent the ‘’wake-up call’’ for regulators around the world. He believes that this could result in regulatory entities making improvements in their operations. Facebook’s plan is to launch a digital currency which will trigger central banks and all policymakers across the world. The U.S. congressional committee asked the social media giant to stop the operations regarding Libra. Also, the House Financial Services Committee noted issues that touch the security nature of the cryptocurrency and Facebook’s troubled past regarding data privacy:
‘’Because Facebook is already in the hands of over a quarter of the world’s population, it is imperative that Facebook and its partners immediately cease implementation plans until regulators and Congress have an opportunity to examine these issues and take action.’’The House Financial Services Committee also warned that if Facebook decides and launches Libra prior to the legislative solutions, the result will be a new ‘’Swiss-based financial system that is too big to fail.’’ The committee also stated that it will further hold public hearings on crypto-related matters next week. As noted in the latest cryptocurrency news, the Reserve Bank Of Australia Governor Philip Lowe indicated there are a lot of regulatory issues regarding Libra. In Asia, the Bank of Japan also warned that Libra poses a huge threat to the current financial systems.
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