Unidentified Crypto Trader Shorts Bitcoin $74 Million Worth Moments Before Price Dip
This Bitcoin Account Shorted Bitcoin at the Perfect Time
On cryptocurrency markets all over the internet, there are constant invocations of the term “whales.” Whales is a word that applies to major investors, often with billions of dollars to invest, who shake up the market and manipulate cryptocurrency prices. When they sell off massive amounts of cryptocurrency, or when they buy a significant combination of different altcoins, these huge accounts have the potential to change the market. As a consequence, big investors are often the target of hate when the market moves.
But to the other end of the spectrum, many within the community closely watch the movements of major accounts. If these accounts are seriously in-the-know about important factors that might eventually influence the price of their chosen cryptocurrency, then they might provide an ideal opportunity for investors to figure out how to invest their own money in the future.
Still, manipulation continues to be a hot button topic within the cryptocurrency community, as well as in the eyes of potential regulators. Regulatory authorities in the United States, and in countries all over the world, have been quick to condemn and view with skepticism the cryptocurrency markets precisely because they are so prone to manipulation by big ticket accounts, or “whales.”
The Manipulation Threat
Likely the most significant factor currently preventing the cryptocurrency community from seeing the creation of an official Bitcoin ETF is the lack of faith regulators have in the ability of the markets to remain free from significant manipulation by large accounts and big spenders. According to the SEC, price manipulation is one reason that they have been reluctant to accept any of the several applications from financial organizations to draft an Exchange-Traded Fund, or an ETF, for Bitcoin.
Despite the gloom, the prospect of a Bitcoin ETF has many people within the cryptocurrency community incredibly excited. A Bitcoin ETF allows investors to speculate on the price of Bitcoin without physically holding the coin, which is an elusive and positive concept for new investors. This ETF would allow investors to avoid the uncertainty and technical skill required to actually hold cryptocurrency, while still giving them the ability to capitalize on the massive profits that the Bitcoin market could allow.
Big Ticket Trends
According to researchers, one investor shorted Bitcoin to the sum of 10,000 BTC on Sunday, a trade which would amount to around USD $74 million. This had represented, at the time, around 1/4th of the total investments in the short market of Bitcoin.
The important part of this investment is that the short succeeded, accurately shorting the cryptocurrency just before it dropped significantly in price. Bitcoin dropped around 11% in the past day to a recent low of $6,500, taking multiple altcoins down with it as it falls yet again in price. And just before this cryptocurrency price fell significantly, this mysterious account shorted for around $74 million USD.
But so far, no information is available on the identity behind the mysterious account. It does, however raise big questions about how market manipulation and insider information might be influencing market moves.