Bitcoin whale manipulation "not possible," says Mati Greenspan

05 Jun, 2019
by Will Heasman
Bitcoin whale manipulation not possible, says Mati Greenspan

While the crypto market reels from the recent dump, which sent Bitcoin flying down 10% to lows not seen in 2 weeks Mati Greenspan - eToro's senior market analyst - has done his own digging into the dip; looking at the potential of whale manipulation and allaying fears by revealing that the crypto markets are now in spring…

Within his newsletter, Greenspan looked into the recent market dip, as well as the (fairly well-founded) conjecture surrounding the incident.

A tall order to fill... 

The theory goes that a transaction amounting to 25160 BTC - a USD equivalent of approximately $213 million at the time of the transfer – was noted moving from an unknown wallet to Coinbase, seemingly to sell.

Later, two more transactions were spotted, one amounting to 14160 BTC, and a further transfer of 11,000 BTC, totaling up to 25160 thousand BTC - the exact same amount which was supposedly dumped on the market shortly before. However, this time, funds were coming back from Coinbase to the unknown wallet, alluding to the idea that the whale had bought back in at a lower price.

However, Greenspan notes that this $213 million order would have been nigh-on impossible to fill on any exchange. Furthermore, Coinbases reported volume for the time of the selloff was just 2000 BTC, giving yet more credence to the idea that this was nothing more than a market correction after an extended rally.

Crypto spring is better than summer

Regardless of whether this dump was simply a market response to Bitcoins parabola or manipulation, Greenspan notes that the “crypto markets are now in spring”

“Spring is really the best time too. Winter was brutal this past cycle but I'm not so sure we should be looking forward to summer either,” said Greenspan.

Despite many looking south, the analyst remains positive believing that a break above $9,000 would provide “further price surges,” caveating that these could be “unrealistic and solely based on hype,” in other words unsustainable.

Greenspan goes on to suggest that a crypto boom can be just as painful as a crypto bust, noting several reasons as to why a fast upswing in price can have negative repercussions:

“Last crypto summer was arguably harsher than any winter. Bitcoin's mempool got flooded, transaction times and fees went through the roof. Not to mention that many exchange sites crashed due to heavy traffic and several of them even had to close their doors to new customers.”

For Greenspan, that is why crypto spring is “the best time by far,” with gains providing sustainability, and fundamentals remaining stable.

Do you prefer the markets slow and steady or fast and volatile? Let us know in the comments!

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