Bitcoin Forum

This article has been written by Jason Bloomberg and published on https://dailyiconews.com, I just copy and paste it.


On June 3rd, the price of Bitcoin (BTC) dropped from $8,451 to $7,886 in ninety minutes, a drop of 7%. Thanks to the intrepid Redditor u/makoveli, we know precisely why this drop took place.

As it turns out, a single individual (or perhaps a consortium trading as a unit) was responsible. This ‘whale’ moved 25,000 BTC to Coinbase. About a half hour later, they moved 14,000 of those Bitcoins to another wallet, followed forty minutes later by another transfer of 11,000 BTC from Coinbase to yet another wallet.

Then a mere fifteen minutes after that, our friendly whale moved ten million Tether (USDT) from one wallet to another.

As u/makoveli concludes, “someone dumped 25k BTC for $215M and bought it back shortly after for $200M. In doing so, they pocketed $15M and walked away with the same amount of BTC as they started with.”

Yes, this whale had $215,000,000 worth of Bitcoin to play with – and play with it they did, to the tune of $15,000,000 in profit. Not bad for 90 minutes of work.

Could anybody have moved the value of Bitcoin this way? Certainly – all you would need is 25,000 Bitcoins or so, and the will to make a huge score at the expense of all the hodler chumps out there.

And if anybody still wonders what the real purpose of Tether and other stablecoins like it is? Price manipulation like this example and many others, of course, benefitting a small handful of whales at the expense of a large number of crypto hodlers – aka marks.

Jason Bloomberg neither owns, nor plans to own, any cryptocurrency or other crypto token, either long or short.

It's well known that the crypto whales can manipulate the markets and cause panic selling.
I'm not sure that this transaction caused the entire btc price spike back to 7.8K USD.The bulls were tired and
hype regarding the price disappeared.

this was already discussed a ton when price dropped and was debunked too. you didn't need to read something on reddit and make a article about it! it was a misunderstanding plus some FUD that led the started of this whole thing to believe those funds were moved to exchange to be sold. we actually figured out that those coins weren't even moved to exchange, but to a wallet (XAPO to be exact)

That is exactly what I am wondering about when reading the post above...bitcoin was not moved to an exchange so the conclusion is that this is just another FUD and someone just actually looked for a reason why bitcoin at that time pulled back and they find the transactions outlined above.

But to continue discussing the main points presented in that Reddit post, the same thing can happen with stocks, forex, gold or any other investment vehicle, if you own something no matter how small or big you all have the right to move them anywhere you want to...there is no law limiting an owner of anything (bitcoin on this discussion) what to do and the same thing here in cryptocurrency. All of us have the right to sell and to buy any amount of cryptocurrency we all want as long as we have it or we can afford it. And there is nothing wrong if ever anyone can profit $15 million in just matter of minutes or even seconds.

In addition, to say that it is money for nothing is wrong because if that person has no bitcoin as capital in trading he would not have any gains, and this is quite basic. Of course, not unless we are subscribing to left-leaning ideas.

Except the fact that most buyers and sellers of any large market cap item are whales on both sides.   The little fish are just people in the stadium with a small stake in the game, .... just because you could afford a ticket to the game, doesn't mean that you are on the field playing.    It's delusional to think otherwise.   

a movement of 7% is insignificant.
just google "bitcoin volatile" and you will see loads of examples from 2011-2019 of price movements

also making a post on the 10th about some dude who made a comment on some ICO site 7 days early, makes it less relevant

as for the guy making the source comment. if he has got passed the initial buzzword of 'bitcoin' to then search out and then get interested in ICO's then its pretty obvious behind his words of pretending not to be interested in crypto. he certainly has enough interest to be involved and researching and watching fund movements. rather than, say going to a bar and meeting women.

anyway. to my point
many crap coins(PoS) have no underlying value, whereby there is no cost of production. thus crapcoins created from blockrewards can be sold at any price and be profitable. thus able to be sold down to pennies.

but bitcoin(PoW) has an underlying cost of production. thus bitcoin wont tank down to pennies like PoS coins would. so the title of 'money for nothing and your bitcoin for free' is wrong on so many levels

in short. imagine there to be a hidden underline value support that the majority of the community wont sell below (~$5k rightnow) and so the public price is just speculating/volatile/fomoing above that support. which again is why 7% movment is not that newsworthy
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Well, you have to give that whale some credit, because he sold during a rising wedge pattern when volume had been dwindling, so more than likely a fall was going to happen anyway. Either way, a correction was needed in the market following the parabolic rise.

You must be new to this entire BTC trading area. These things happen all the time, but people don't usually notice them unless such big changes happen. Some sellers smartly sell their BTC using OTC platforms in order to minimize the effect on the market as a whole.

Some don't and the person in the article is basically one of those whales. This is a free market and they can do as they please. We are all aware of the risks here which is why we cannot blame anyone apart from ourselves if we lose money.

When you add the reference to the source you need to pinpoint which one it is, and not give a link to a site which has probably thousands of articles. That is to say, the link should really be the following: https://dailyiconews.com/crypto-skepticism-of-the-week/money-for-nothing-and-your-bitcoin-for-free/jason-bloomberg/2019/06/07/

And again, people should really drop this habit of simply copying and pasting an article without investing some of their own time to dissect it and create at least a versed opinion on what the article points out.

Such kind of manipulation is happening since a long time, probably from the inception. That's one of the risks of unregulated public markets and we will have to live with that!

If we want to save ourselves from such manipulation, we can start using "circuit filter" technique! It is being used by major exchanges to cut extreme volatility and also to stop such manipulations. Read it here,

https://www.ndtv.com/business/what-circuit-filters-in-stock-markets-mean-388463

Exchanges will have to be proactive in implementing such measure but that would drive their big customers away!

Indeed crypto whales can manipulate market and sometimes this affect people who not have so much coins and some of them sell because they see the price dropping.

It's true and sometimes, whales are also taking advantage of the dip especially when people are doing panic selling.
The fact is we can't do anything about what they're doing but to deal with the changes. They hold the biggest amount of Bitcoin which could change the prices instantly and we can't control them.

Yes but just like any other trader they could also lose profit from short trades .
If the people didn't panic from their dump and just bought it and the price starts to rise up then they would just lose their money.
They just took the risk too but the people bought their plan and as result they manage to get a $15M profit,
This is what the pump group has been trying to do since most of the pump groups or paid  groups doesn't have that much crypto.

This has been happening for years which some of us isn't aware of. Sometimes, we only notice the huge movements of the prices but it could even affect and manipulate every single detail and changes in the market. Whales could cause a pump and dump anytime which we must be aware of so we'll know how to go with the market flow.

Lol, Dire strait song? (I'm sure only a handful of members here can relate about that song  ;D)

Seriously though, this has been happening for the last 2-4 years so I'm not surprised by this sudden move of coins, if the intention is to somewhat influence the price of bitcoin. This is what we can manipulation specially coming from whales in this sphere.

What worry us most is those newbies so are easily sway by this news. Majority of them will be somewhat influence and push the sell button because they don't know why they are being played by this whales.

This thing can happen on almost every market. And the smaller you market is the fewer efforts it would take you to manipulate this market. So everyone who got millions worth of BTC may try to get some easy money.
But I believe that in case with stocks such things would be considered as a kind of fraud and you are risking to get into jail.

Even in large, regulated markets, this has happened for sure. It's just that for bitcoin and other cryptocurrencies, it's so easy to do this knowing that exchanges do not really care about large orders such as this when they occur as long as they are getting the trade fees in their pocket. Also, IIRC the reason for the drop and the transfer of the bitcoins was not really related at all, for the huge transfer was later found out to be just someone trying to move funds from A to B and not really liquidating it. But the point still stands though: as long as exchanges allow such events to happen, unexpected pumps and dumps would surely be seen from time to time.

According to this article, anyone with a 25K BTC can earn millions of dollars in just a few hours with the right moves. Am I correct? Could this be so simple? I don't think it's possible.

OP I believe this was discussed sometime last week or the other can't just remember the source but thanks for bringing this to light
Honestly this is news to me , we were made to believe funds actually did move all in an effort to manipulate prices and profit from this but after reading this it is evident that crypto is full of FUD and we need to develop investigative ways of verifying news for authenticity.

there are many risks to be gained when playing in the crypto world. very high risk when someone does not understand what they are playing. maybe Jason is someone who doesn't take risks.
how about you guys?

Even if this information proved  to be incorrect, it could well have happened in practice and this is quite normal. Smaller bitcoin holders do this all the time. This is one of the reasons why Bitcoin does not reach very high price values. Thus, its price will constantly stray. This is quite normal, because if this market rule did not work in relation to cryptocurrency, then after some time there would have been a general collapse. Simply put, the bubble would burst.

It seems to me that there is no need to blame ordinary users of cryptocurrency, which keep small amounts of Bitcoin.  The fact is that in the cryptocurrency market, large whales have always been manipulated.  Trace the connection between large orders on trading exchanges with Bitcoin pricing.

People are only talking like this because things went well. If things went badly then what? How often can a whale do this? It must have been calculated. Whoever the owner of that wallet is they sure are lucky.


I think most of us would do the same thing in their position.

Small holders most of the time are the victims of whales movements, each time the big bag holders create actions momentum will go according
to their directions, it's always the traders who can handle pressures and risk will benefits with any sway that will happen.

Trade with all your knowledge and continue to enhance your opportunities, whales are there so carefully analyze before believing in any created movements,

I didn't know these news were just fud, but since it is, I agree with you: this could be a very normal event on crypto market. Hodlers who have many coins under their control can manipulate the market and play with prices, leading a panic selling wave right after that will impact the market even more.
Some centralization enthusiasts will use this possibility as an argument against bitcoin, saying that is one of the biggest weaknesses of decentralization and I believe they aren't totally wrong. At same time that is what allow investors to build their fortunes and grow their small investments decently.

As I can see with this business, if you have a big huge capital in cryptocurrency there is  big chance for you to earn big in the future, even for a short of period of time. And it is true that big whaler is an advantage because they can manipulate the market so easily.

I am not saying this cannot happen, but I think after reading the whole discussion it became clear that this was just FUD and not true at all. Yes, there are certainly people doing this and I think it is highly unethical to manipulate the market at the expense of others, but I think most people would do this, if they had the resources to do this.

Would you ignore a $15 000 000 payday for 90 minutes of work? <Most people work their whole life and never accumulate that kind of money>  ::)

Doing the "right moves" on trading is possible for whales since we've seen the price of Bitcoin move by 5%-10% several times. It's not always simple and he's not the only whale trader so there's still a risk to it.

Also for others that are interested in reading the thread that was discussed a week ago (https://bitcointalk.org/index.php?topic=5150691.0) (mentioned by a couple of users on page 1).  

is surprisingly the ease and speed with which whales manage to manipulate the market in their favor, interest, exchanges should find a way to stem this phenomenon, unless it also suits them (more fees for more volumes)...

Yes right, this discussion has been discussed in another thread and it is true that there are quite a lot of coin transfers. But that doesn't mean that they dump all coins, the price drops in my opinion because there is a lot of fud appearance due to this discussion so that people think through other perspectives as if a big dump will occur.

https://bitcointalk.org/index.php?topic=5150691.msg51347543#msg51347543

That's the power you can have if you own thousands of bitcoins but it's not verified that this news that has shared by OP is what actually happened during the dip days.

Even for $1 000 000, you have to calculate on how many years you need to dedicate within your life just to accumulate a net of that profit. But yeah, it was all just a FUD and I thought last time it was for real. These articles would really love to drive the prices down by their influence.

Manipulating the market which benefits those who are having good volume of bitcoin but those who just take risk with small amount can easily panic when the price changes and gain profit early though small than to lose it due to price dropping. We have to understand how to play with the market.

The cryptocurrencies world is just a virtual model of the reality we live in. Those, who have more money can affect almost everything, which has a material nature. The whales will always manipulate the market.

Honestly i don't really see the point of this thread since all you said there happened more than a week ago. Regarding to whales, it's well knows that they do this kind of moves pretty often and it's no wonder that when you have hundreds of millions of dollars at risk you are almost 100% that you are going to end up in profit.

Even so it does not rule out the possibility of old traders also following the market flow and they sell it because of that manipulation. Old traders must hold coins with a large amount on average and certainly they don't want to lose, therefore they are also carried away and sell them.

There are too many hypocrites here, even though they are also afraid when there is bad news that affects the market and they push the selling button in droves, that's a double-faced trader.

It is not the secret fact that BTC whales use different exchanges for arbitrage and speculation. Over the 200 mln, USD is not a joke and these guys found an easy way to make money with simple clicks. A dream came true or these guys, these guys know what they are doing in my opinion.

Money for Nothing and your Bitcoin for Free

I thought this article was going to be how usd and other fiats are printed in unlimited and they get your bitcoin for free (limited), because that would of been a good article.
This is about a pump and dump, who cares?

This is true for everything not just bitcoin or stable coin.
The world economics has worked this way. The improvment in crypto is that you have choices.
If you talk about real world fiat wealth, it's more concentrated around whales than bitcoin is. 26 richest people in earth owns more than 50% of total global wealth.
https://www.theguardian.com/business/2019/jan/21/world-26-richest-people-own-as-much-as-poorest-50-per-cent-oxfam-report

I see that sometimes the price of a coin is influenced by a large shot from the popes, when they start playing their assets, the market price changes immediately. So the conclusion is, market prices are influenced by the game of the big whale.

The whole market has become a gambling house has the whales are the one controlling the price to their own self price , even the TA has no effect on the market anymore for the they are the dictator , just recently that price need to dump bit keep in stands for days and sudden surge happen and also now the price as stay for days in 8000 range which they are to pump or dump any moment.

We all know whales can manipulate the market. Ofcourse they will take advantage of the bull and make a profit that's what everyone wants right. There is nothing new on whales getting profit. I know some whales people who do things like this too so no big deal!