Goldman Sachs Insider Trading With Bitcoin?

Goldman Sachs announced earlier today that their supposed plans to open a cryptocurrency trading desk will not be going ahead. This news appeared to spark a huge downtrend in the market, causing the overall cryptocurrency market cap to reduce by just short of $40 billion. Leaving further questions surrounding cryptocurrency market manipulation and whether Goldman Sachs are potentially guilty of insider trading.

“At this point, we have not reached a conclusion on the scope of our digital asset offering,” a Goldman spokesperson told Reuters in a statement.

The news of Goldman Sachs sidelining their cryptocurrency trading desk coincided with another major event in the crypto world. It has since been reported that just a few days prior to the Goldman Sachs announcement, an unknown investor took a 10,000 BTC short position despite the upward trend the market had displayed the previous few days.

It has been thrown into question why anyone would take out a $74,000,000 short position given the overall market trend at the time. And given that the markets fell so heavily just a few days later has sparked industry experts to question whether the mystery investor knew something.

The image below shows how the bitcoin short market was declining, before the 10,000 BTC short position was opened.

Image taken from Cryptovest

Alternative theory

Reddit user, u/sick_silk has reported that a vast number of bitcoins linked to the original Silk Road bitcoin address, u/sick_silk has made a number of different analyses. The wallet seems to have appeared in May 2014 with a balance of 111,114.615 BTC ($802.4 million), and has now begun moving these coins to various exchanges including Bitfinex and Binance.

Of the initial 111,114.615 bitcoin, 11,114 BTC has moved to a Bitfinex wallet, while another 4421 BTC has moved to Binance. The amount moves is roughly $99 million at the current price of $6,400 per BTC

“This represents 14% of the original funds and more than $110 (million),” the user notes.

As commentators consider whether the fresh activity marks the start of a sell-off of the giant stash of bitcoin, others continue to examine the origin of the funds and the possible identity of the wallet’s owner.

Some have speculated that the same individual who has moved the bitcoins onto the exchanges may well have opened the 10,000 bitcoin position.

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By | 2018-09-06T14:22:11+00:00 September 6th, 2018|Cryptocurrency News|0 Comments

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