Good King news / By Kingnews
W is he behind the $ 1 billion Bitcoin drive, which caused a sensation in early September? A dictator who wants to save his money? Bitcoin investors early redeploy their digital parts? Miners of digital parts who want to let others feel their power? Super rich, who fear a financial crash and therefore embark on cryptographic values? Or savvy speculators who handle the market with large sums of money? This is the big topic that has been haunting the crypto scene for weeks.
The questions say a lot about the state of the Bitcoin market, but also about the state of the global financial system as a whole.They highlight a technology likely to gain great importance in the good and the bad in the 21st century.What is the relevance of the subject, proves the project of Facebook.The American group wants to introduce its own cryptocurrency with the product Libra.More attention is being paid to what is happening in the bitcoin market, which is still the most important cryptocurrency.
On September 6, a player bought 94,504 bitcoins with a total value of about $ 1 billion.It was a new record in the young history of digital currencies.
For the moment, the market was buzzing.No less than 0.5% of all existing bitcoins have changed ownership in a single transaction.
The sheer size of the transaction restricts the circle of potential buyers.Did an insider bet on rising prices?
Source: Infographic World
In the Bitcoin network, the addresses (blocks of the blockchain) are visible, but it is impossible to know who is behind.”Unless he is so clumsy to link his address to his name, for example by emailing him,” says crypto expert Aaron Koenig.This did not seem to happen in the case.In fact, trading platforms need to know their stakeholders.But not every stock market in the world takes it as seriously with data entry from customers.As a place of action, data analysts have located the Seychelles-based Asian cryptographic plant Huobi Global.
“It is common knowledge that few players still dominate the bitcoin market,” said Ulli Spankowski, General Manager Digital at the Stuttgart Stock Exchange.He thinks it’s possible that some Bitcoin billionaires have moved their coins back and forth.
The fact that the transaction may have taken place in a shopping center with its registered office in a less regulated country suggests that the buyer did not wish to attract the attention of the supervisory authorities.Many transactions would also be made beyond known trading platforms to make transactions even more anonymous.”Market participants have said over and over again that they want to manage cryptography activities beyond the markets for customers,” Spankowski said.
Source: Infographic World
It should be noted that Bitcoin futures volumes have surged around the $ 1 billion order.With futures, investors are banking on future price developments.
In August, about 500 such contracts were traded daily.
In the mega-order environment, there has even been a five-fold increase in daily volume, making the incident all the more mysterious.This suggests the suspicion that a party involved in the mega-transaction could have used his knowledge to create additional friction.Speculative gain of $ 50 million?
More and more wealthy private investors see crypto-currencies as a way to diversify their assets, even and especially when they fear an imminent financial crisis.Bitcoins and other cryptographic assets perform a function similar to that of gold, with the difference that large purchases of precious metals are not made public.There is no cash book visible to all, as in the case of Blockchain.
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Billion dollar transactions are also not unusual in stock and bond markets – what are known as “bulk transactions”– for example, when homeowners want to sell shares.Such transactions may also be a trick with which, for example, hedge funds want to steer the market in a certain direction.Frank Geßner, founder and CEO of the investment manager Invao Group, is suspected of a similar maneuver.
“We see in the order of a billion dollars the attempt of a great address to manipulate Bitcoin’s course.”
The data analyzed by Geßner indicate that a person has accumulated an important position in bitcoins before September 6, and then threw them on the market in a single move to bring down the price.In fact, cryptocurrency has temporarily decreased by nearly 7% this trading day.The person or people behind the deal would then have been able to buy Bitcoins at a more favorable level.With this maneuver, they could have made gains of more than $ 50 million in just a few hours.
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“Some bitcoins may have been borrowed, which is not uncommon in such transactions,” says Gessner.Similar market manipulations have occurred more often in the past, most recently last Thursday.Often a Bitcoin whale is behind.Bitcoin Whales – that’s what the big owners of crypto-assets are called.
“Sometimes these whales have been mined early in Bitcoins or have arrived at an early stage, in 2009 or 2010, for maybe ten thousand euros.” Today, these coins have a value of several hundreds of millions of euros.
Their owners can shake the entire market with this volume.”These transactions are perfectly legal in themselves,” says Gessner.The investment manager questions the fact that the mega order has stopped moving prices.”For me, it’s a clear sign that the Bitcoin market is maturing.” Even speculative attacks of this magnitude, it can obviously damp relatively well.
This text is from WORLD ON SUNDAY.
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Source: WORLD SUNDAY.
