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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