When it comes to the current Bitcoin price momentum, it is rather evident things may not necessarily evolve in a positive direction moving forward. In fact, the opinions on cryptocurrency prices throughout 2019 are all over the place, although CoinFi co-founder Timothy Tan isn’t too impressed at this stage. In fact, he has identified some potential signs which indicate this most recent drop off was a matter of time.
A Premeditated Cryptocurrency Dump
For as long as cryptocurrency has been around, it appears there have been concerns regarding potential insider trading. Although none of these claims have been proven to be correct – so far – it would appear the number of allegations isn’t necessarily diminishing either. That in itself always makes for some interesting discussions, albeit it also highlights one of the main problems this industry faces right now. Distrust leads to more volatility, which is not necessarily what this industry needs right now.
According to CoinFi co-founder and CEO Timothy Tam, the most recent market dump was somewhat premeditated. While that may be a stretch too far first and foremost, it would appear there is some evidence which can back up these suspicions. Tam identified a massive Ether transfer of 40,000 ETH – worth roughly $5m at the time of the transaction – was moved to an undisclosed exchange prior to the drop off materializing.
While that in itself might not necessarily be a sign of misconduct, it is evident someone was well aware of the Ethereum price declining in the near future and decided to take appropriate action ahead it is materializing. Considering how the latest wave of bearish pressure triggered a near 15% decline for Ethereum, it is evident this one large transaction had its role to play in those proceedings. To date, Tam ha snot confirmed which exchange was involved in the process, but he did state:
“Usually transfer of Ethereum onto an exchange indicates an intent to sell, and if there is a sell-off on one exchange it compounds like dominoes to another because arbitragers will sell immediately on the other exchanges as well.”
Although the overall drop affected Bitcoin and other markets as well, it is evident this Ethereum transaction raises a lot of questions which are not all that easy to answer. One would have expected the Ethereum Classic price to drop significantly following its recent 51% attack, but that only happened once all other major markets started to lose value. A very peculiar trend, but it also shows the markets are not evolving in a rational matter at this time.
Based on the findings by Tam, one has to wonder if this most recent market drop was orchestrated, or just a sheer coincidence. Considering how these drops seem to occur on a very regular basis over the past 12 months, it does appear as if there is some coordination involved to make these market drops succeed in spectacular fashion. Proving anything nefarious is going on will always be the main problem, though.