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At the beginning of today, the news spread that Goldman Sachs was putting aside the plans of by opening his cryptocurrency trading desk, a relationship that coincided with a market that took a sharp turnaround . On the other day, market analysts saw someone taking a short position of 10,000 BTC while the general market sentiment was positive.
Leading analysts questioned why someone would take a $ 74,000,000 short position so quickly. It made no sense unless he knew something they did not have. Only a few days after starting the short, there are some bearish news coming out.
Others speculate that it could have been someone from Goldman Sachs who took a short position of $ 74 million, waited 2 days, then announced they were pulling from Crypto.
These speculations were just that, speculation. But with the new AI technology that keeps an eye on the cryptocurrency market, there is evidence to indicate a deliberate manipulation of the market, although by those who are still under discussion. And CCN just got the scoop, right from the data source.
What Happened:
When cryptocurrency occurred in the morning for quite some time, traders were looking for news behind an unusual 10% movement across the board. Bitcoin, Ether, Litecoin and other tokens are all declined on a considerable volume.
Later in the day, the catalyst was found: Goldman decided to suspend developments on his well-known encryption desk. Many comments on this news were about potential insider trading and the fact that institutional buyers would like to enter the encrypted space at lower levels, thus manipulating the markets.
Scientists and market analysts of the team RoninAI a platform of cryptographic signals based on artificial intelligence, gave a closer look at the situation to see all the activities of the flag red that surround the fall. A number of indicators were indicating unusual behavior just before the fall. One of these is the social feeling that has sporadically increased the minutes before the actual fall occurred.
The three-day chart below indicates that such volatility in social sentiment often occurs and whenever the AI algorithms occur they react to it.
This chart does not indicate a bullish or bearish inflow, rather sudden that is not authentic To zoom in, let's look at the last couple of hours before the event. It is very clear that social sentiment has increased beyond 3 standard deviations from its average levels. Historical data indicate that these peaks are not typically natural events.
Three standard deviation events occur in about 0.3% of cases and each time the RoninAI team does the study of the event to analyze potential market effects.
the break above the 3 standard deviations occurred about 10-15 minutes before the crypt refused to spur other questions about whether this event was, in reality, a manipulation of the market or not. Timing, in addition to the unnaturalness of this peak, is a strong signal.
Data scientists strongly believe it was market manipulation or insider trading, but they are reluctant to give a definitive answer for obvious reasons.
Bulls news is that anyone planning to start over 10k BTC has to buy back at some point and will probably increase the price significantly. The bad news is when they start to close short positions and buy back. There is no real way to predict how this event will affect the market in the short or long term.
Disclaimer: data and information / graphs on social sentiment have been provided by RoninAI and do not reflect the opinion of CCN.
from Shutterstock.
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