The price of cryptocurrencies took a serious dive after the manipulation game started to get even stronger. No wonder why the U.S. Securities and Exchange Commission turns down Bitcoin-backed ETFs citing “Manipulation” as the number one issue.
The crypto community managed to blame a lot of factors that influenced the recent dump, one of the main being that someone made a $74 million short on bitcoin right before the drop. Rumours has it, that the unidentified investor had insider information about Goldman Sach’s decision to halt its decision to create a Bitcoin trading desk.
Re the new report that Goldman is ditching its Bitcoin trading plans: sources tell me that they are continuing to put off trading actual Bitcoin, but they are still moving ahead with trading crypto futures and forwards for clients, as we reported in May https://t.co/MK2nUDHOZg https://t.co/3NSwIW3tVr
— Nathaniel Popper (@nathanielpopper) September 5, 2018
The investor took out a 10,000 BTC short this past Sunday, roughly equalling $74 million at the time. This short brought the total market short positions on BTC up to 32,000 BTC, which has since surged to more than 37,500 BTC during the recent downturn.
While there are no hard evidence to demonstrate that this was an inside trading tip, actions related to the facts, state the obvious.
Adding even more fuel to the fire, Shapeshift, a popular platform for instantaneous Bitcoin exchange, will introduce obligatory memberships where users will provide their personal data.
“ShapeShift has big news for our users! We are now offering a new membership program, which will provide users with more benefits & better user experience,” the official announcement says.
Even ShapeShift’s CEO Erik Voorhees admits, that the compulsory registration is a painful measure, dictated by the unclear regulatory landscape.
“Yes, that last detail sucks. We would prefer if the collection of personal information were not a mandatory element. We still firmly believe that individuals, regardless of their race, religion, or nationality, deserve the right to financial privacy, just as they deserve the right to privacy in their thoughts, in their relationships, and in their communications. Such privacy is a foundational element of civil and just society and should be defended by all good people. We remain committed to that cause, and it is best served if we are smart about our approach.”
This indeed turns out to be a manipulation game where recent stats from Bitmex showed massive liquidation from the Longs side, roughly about $693 million.