On the last day of summer, Reddit user "sick_silk" reported that the owner of a large wallet associated with SilkRoad was actively moving funds, dividing them into 100 coins and dumping them into 80 smaller wallets. The crypto community immediately assessed the threat of releasing such funds onto the crypto market.
The price of bitcoin has been slowly and steadily rising over the past two weeks. Although it’s hard for the bulls to take each next step upward. In the current situation, only a large whale playing for the bulls can push the price up. Observing the attempts of the BTC to reach the upper limit of the range, most traders believe that this is the influence of positive news from regulators.
“sick_silk” is sure that this is the consequences of the beginning of the movement of bitcoin and its forks from a wallet that has stored crypto assets worth $1 billion over the past four years. Crypto assets frozen in the wallet since 2014 were transferred to addresses of large crypto exchanges and it is possible that the recent rise in the price of bitcoin is caused by this movement.
Having conducted his own investigation of transactions from the SilkRoad cold storage wallet, he came to the conclusion that about 15,593 BTC were moved to Bitfinex and Binance, which is about 14% of the funds stored. In addition to these two recipients, he was able to track about 210 more bitcoins transferred to Bitmex in six transactions.
There is another assumption about the identity of the wallet. He is associated with Mt Gox, which, most recently, prepared rehabilitation plan and compensation for damage to the military-technical cooperation. However, this is unlikely, because part of the Mt Gox funds, in the amount of 200,000 bitcoins, were discovered after the bankruptcy proceedings began.
Regardless of whether the wallet belongs to SilkRoad, Mt Gox or any other whales, the movement of such volumes of crypto assets seriously threatens the market. Such a large move to exchanges, especially bitcoin, may be preparation for a large dump (dump) of the first cryptocurrency. Especially against the backdrop of persistent attempts by the military-technical cooperation to push the price through large volumes of purchases, which causes some associations with pumping. And if what “sick_silk” says is true, we could soon see the price of Bitcoin crash.
So far there has been no significant market reaction to this unexpected step; in the last 24 hours, bitcoin has remained stable, staying in the corridor above seven thousand dollars.
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