A cryptocurrency wallet that has allegedly ‘woken up’ is in the latest Bitcoin news – mostly because of its mysterious movement and the recent deposit of $100 million in Bitcoin to Bitfinex and Binance over the course of ten days during the end of August.
The wallet, which has around $720 million – or 111,114 BTC – makes up the 0.52% of the total supply of the largest cryptocurrency. From its sudden movement, many believe that this wallet has a disruptive potential in the market price action, especially if the funds belong to one or the two likely candidates that some Reddit users are pointing out to.
A Reddit user named sleuth u/sick_silk first noticed the movement of the funds, reporting a series of posts tracking each transaction in detail, paired with graphs to show the activity. The first post was made on 31 August in which the user suggested that the funds may be connected to the now-defunct dark web market Silk Road which traded billions of dollars worth of recreational/prescription drugs, weapons, illegal pornography, malware, hacking services etc.
As the Reddit user wrote:
“It seems that the owner of a huge SilkRoad related wallet is moving funds actively since 3 days, dividing it in chunks of 100 coins by subwallets.
Last movements on these subwallets are 4 years and 5 months old (March 9th, 2014).
The chunks have been divided over time to 60,000 coins then to 30,000 / 20,000 / 10,000 / 5,000 / 500 and now 100 coins.”
Sick_silk also connected the original address to the Silk Road via the Bitcointalk thread in which users try to connect the dots to from an address operated by the DPR (Dread Pirate Roberts AKA Ross Ulbricht, creator of the Silk Road) and the one in the Reddit post over the course of six transactions.
They guessed right later in the post; it's an old MtGox whale, unrelated to Silk Road.
— WizSec (@wizsecurity) September 4, 2018
Other theories also say that these funds may belong to an old Mt. Gox wallet – which is a statement that the Bitcoin security specialists at WizSec are fully backing. What’s certain is that the movement of the funds may be at least partially responsible for the recent price decline seen in August – and potentially many others in the future.
Russia Is Not Planning To Buy $10 Billion In Bitcoin
“This statement has no common sense. The Russian Federation — like any other country in the world — is simply not ready to combine its traditional financial system with cryptocurrencies.”Sidorenko reacted to the fake news reports from Telegraph where it was noted that Russia wants to invest $10 billion in bitcoin in order to mitigate the economic impact that is brought up from the US sanctions. The rumors emerged on Twitter where a particular user wrote that Kremlin has no choice but to invest in bitcoin and that it is the only way to avoid the harsh sanctions by President Trump. Ginko posted on Twitter and his post went viral after Telegraph wrote a story about it and lots of other websites just added their own touch to it. Ginko is known to the public for making such shocking tweets and comments after once saying that sham investment adviser Bernie Madoff is the real Satoshi Nakamoto. However, Sidorenko said that Ginko’s comments are absurd:
“Even if Russia wants to place its cryptocurrency assets now, it simply cannot do this. We do not have any mechanisms that would allow us to introduce a system: where these assets would be stored, which authorities would be responsible for it, which would be responsible for abuses and stuff.”However, according to Tota Kaliaskarova, the director of macroeconomic policy with the Eurasian Economic Union says that crypto could have a huge impact on the Eurasian economy.
Market Sees Red, Losing $1 Billion Overnight While Bitcoin Remains At $3,600
Crypto Analysts: 2019 May Be A Year Of Bitcoin Accumulation
“Similar to 2015, 2019 may be the year of accumulation.’’Another crypto researcher Willy Woo said that while a crash of bitcoin to $3,122 could lead to an increase in volume, it won’t show signs of starting of the accumulation period. He pointed out:
‘’Despite the technical setup that suggests bullishness is possible, there’s not a lot on-chain volume to fuel a prolonged up move. What we saw in the last 7 weeks was a spike of on-chain volume driven by volatility, coins moving to exchanges to trade. The initial volume spike false signalled a faster detox and an earlier end to the bear market, but in fact it was a volatility side effect. That move from $6k to $3k created immense trade volume, but it was in no way a signal that accumulation volume had begun.’’Until evidence for the accumulation of crypto assets shows up, there are still expectations of high volatility levels.
Scott Galloway Of UCLA Believes Crypto Will Get Worse In 2019
‘’VR and crypto go from bad to worse. AI fails to live up to the hype. 3D printing rises from the ashes. Smart cameras become a hot category.’’His assessment seems to be accurate but can the crypto market prove to be the odd one out? This can be so since many industries are really committed to the crypto sector. Companies such as Fidelity, ICE, and Nasdaq have funded at least five projects in the crypto space over the past year. Venture capitalist Jim Breyer even said:
“So many of the very best computer scientists and deep learning Ph.D. students and postdocs are working on blockchain because they have so much fundamental interest in what blockchain can mean. You don’t want to bet against the best and brightest in the world.’’
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