Suspicious Trading In Bitcoin (BTC) Raises Red Flags

Suspicious Trading In Bitcoin (BTC) Raises Red Flags

Suspicious Trading In Bitcoin (BTC) Raises Red Flags


In the 1st week of September, Bitcoin saw its price fall by about 14%, from 7,380 to 6,410 following news that Goldman Sachs (NYSE:GS) was going to halt its plans to set up a digital currency trading desk.

While it turns out that this news story may not have been entirely truw, and although Bitcoin has seen dramatic fluctuations all year, some analysts are speculating that insider trading may have something to do with the steep decline.

Now, according to Crypto Daily, an AI (artificial intelligence) firm found signs of suspicious activity coinciding with the news and the price dive.

One trade in particular raised red flags for data scientists from RoninAI, the AI analytics company.

This trade involved a 10,000 BTC Short-sell position which took place just ahead of Goldman’s announcement. Worth $74-M, the position was significant, but it is the timing of the sale which has drawn the focus.

Before the news was revealed, Bitcoin had seen a steady period of positive sentiment from investors over a period of several weeks. And it seemed unlikely that a Short seller would wish to bet against the cryptocurrency on the wave of those gainers.

But, of course, if the investor in question had an idea that the Golcman news was about to break, this might have made all the difference.

RoninAI detected an increase in social sentiment surrounding bitcoin even as the leading cryptocurrency fell by about 350 in just 2 hours.

Analysts from the company suggested that “the chart doesn’t indicate Bullish or Bearish, rather a sudden influx of activity that is not authentic.” The company added that “the break above the 3 standard deviations took place about 10 to 15 mins right before Bitcoin declined to spur more questions as to whether such an event was, in fact, a market manipulation.”

RoninAI previously said that “it has been proven that social sentiment influences cryptocurrency prices, so the opinion of the crowd certainly matters…one should take into account what the general masses are saying, but to remain skeptical and incorporate the movements of the crowd into a more advanced strategy.”

Bitcoin is currently trading at 6,482.7998, -67.2002, or -1.03%, as of 14 September 1:56a BST, the market is open.

Have a terrific weekend

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