Jun 4, 2019 10:30 UTC
Jun 4, 2019 at 10:30 UTC
Whales Are Manipulating the Market To Accumulate More Bitcoin Before The Price Touches New Highs
Bitcoin prices have fallen below the $8k mark for the first time in weeks and market analysts say that the recent decline is due to the dump manufactured by whales in order to hoard more Bitcoins. Bitcoin has been quite bullish throughout the month of May, and the community was expecting the prices to touch $10k in coming weeks.
Bitcoin dropped $600 dollars on June 4th and currently trading at $7938 at the time of writing. It is down by 6,31 percent on the 24-hour price chart. The drop in prices took Bitcoin to lower support of $7,800 but the support kicked it keep it above $7,900.
Market analysts suggest that big whales have dumped their Bitcoin onto to the market to create an artificial bearish trend and cash out the profit of their early investment.
Whale Alert, a famous Twitter handle who keeps a watch on the big movement of cryptocurrencies reported that right before the price drop, one user moved around 25,000 BTC from an unknown wallet to Coinbase exchange. The moved Bitcoin is estimated to be worth $215 million. As the prices of Bitcoin moved under $8,000, Coinbase initiated two transactions to two new wallets.
The total amount of moved BTC from Coinbase was exactly 25,000 BTC, so its quite clear that the user who first transferred the said amount of BTC lowered the price of Bitcoin, made a profit by selling it and then immediately bought it once the prices got lower. The user in question made a profit of $10 million by simply reusing his funds.
Twitter users were not highly impressed by this artificially created market dip. One of the Twitter users said,
“The BTC dump today was completely manufactured”
Whales are Notoriously Known For Manipulating the Market
As much as one hates market manipulation, it has become a bitter reality of the crypto space where whales are known to create artificial sentiments in the market to take the home biggest share of the profit. However, whales only seem to come under the radar when their actions lead to a decline in prices of cryptocurrencies, but if it leads to a massive uprise like the April 2nd one, no one seems to bat an eye.
So, as a community, we must find a way to minimize the effect of Whale movement in the market.