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From the start of this year, cryptocurrency markets have lost about 80% of their total value in a series of sharply lower prices. While arrests have been frequent and their effects have prolonged, the jury is still out regarding their causes. According to a discussion on the online forum, Reddit, the last fall in bitcoin prices, during which it lost about 16% of its total value in four days, may have been caused due to investor concerns over a bitcoin that moves coins from a wallet. The portfolio has an address associated with Silk Road, the infamous dark web store that sells everything from drugs and guns to steroids and medical supplies.
The Reddit poster calculates that the original wallet had a bitcoin wallet of $ 844 million which translates into about 111,114.62 bitcoin and bitcoin money. The coins were moved from the portfolio last time in March 2014. After sleeping over the past four years, the portfolio has shown signs of activity recently. According to the Reddit manifesto, the portfolio owner has moved 60,000 coins into 100 pieces of coins in the last two weeks. 2980 coins were moved to a wallet on Binance, the world's largest encryption platform. The portfolio owner is also attempting to circumvent identification by shifting coins between multiple nodes.
Can bitcoin whales affect the cryptocurrency markets?
This is not the first time that bitcoin whales have been blamed for a collapse of cryptocurrency markets. The media reports had accused the sale of $ 400 million of cryptocurrencies from the former Mount. Gox Trustee Nobuaki Kobayashi for a market crash at the start of this year. However, Kobayashi later elaborated that he had sold the stock in pieces between December 2017 and February 2018 to avoid affecting the encryption prices. The markets were in free fall in December, which culminated with bitcoins almost touching $ 20,000. For most of January and February (and for the rest of this year), cryptocurrency markets were in bear territory (See also: Bitcoin Bloodbath: $ 53 billion canceled by Crypto Market Cap). This resulted in a loss of liquidity as investors have either taken out their investments or moved them elsewhere. This could make them susceptible to manipulation. (See also: Why do the Bitcoin whales sell $ 100 million Crypto?)
"The main problem of the cryptocurrency market at this stage is low liquidity and, consequently, a high degree of susceptibility to manipulation", said Yuri Adveev, CEO of the CINDX blockchain platform. According to him, an increase in the number of Tether, a stablecoin and the movement of large amounts of cryptocurrency by "large portfolios" has caused an increase in bitcoin prices. Such situations could result in short-term losses for inexperienced market participants, he said.
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