Recent F2Pool dump

[tinopener]

Interesting theory from financial daily City AM:

In the case of why Bitcoin fell 23%, this can be put down to two primary reasons. F2Pool Bitcoin mining pool sent 3633 Bitcoin in a single transaction out of their bitcoin mining wallet and right onto the exchanges. They then proceeded to dump all of this bitcoin in a very short period of time. It is unknown if F2pool were also shorting Bitcoin to capitalise on the price falling. As the price of Bitcoin fell, there are so many new people in the market and new money is easily panicked so they then start selling for a loss and so you end up with huge amounts of Bitcoin flooding towards exchanges. This then snowballs into a catastrophic market move triggered by just one Bitcoin miner.

The story of F2Pool dumping might not be one, however, of unsophisticated investors selling bitcoin to pay their bills. I believe it is more likely that F2Pool have been dumping Bitcoin in order to stop the price of Bitcoin going euphoric and ending the bullrun. Every time Bitcoin has turned euphoric on the NUPL (Net Unrealised Profit & Loss) indicator, a bear market has followed shortly after, so this is something to consider. The recent drop in Bitcoin price may actually be intended to delay market euphoria and extend the bullrun.

This theory actually lines up very well with what is going on in the market because on the cards at the moment Michael Saylor is about to buy $1 billion of Bitcoin over the next few days. Of course if he were to buy when Bitcoin was peaking at $58,000 then he would send the bull market into a euphoria, but with F2Pool crushing the spirit of crypto investors, his buy order will be easy to fill and when he sends out confirmation of its completion, investors in crypto have historically reacted very positively to such news.

https://www.cityam.com/bitcoin-price-crashed-here-is-what-comes-next/

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[SquirrelJulietGarden]

Less than 4000 BTC are not big to dump the market. One Binance, 173,200 BTC has been trading in 24 hours. How 4000 BTC can manipulate the 173,200 BTC in a day?

I can not step in the shoes of weak hands who panic sold their bitcoin but if you are considerting F2Pool as a cause, it is only a trigger (if it is). The rest activities on the market is manipulation game.

Price is strongly rallying today can explain something.

[pooya87]

Interesting theory from financial daily City AM:

There is nothing interesting about finding a random medium size transaction on bitcoin blockchain and then making a guess about what that transaction was in order to make the conclusion that you like to make.
The story here is full of holes.

First of all there is no proof that the coins were moved to an exchange let alone were sold on that exchange.

Secondly selling such a small amount on one exchange out of 12 major ones is not going to cause a bitcoin price crash. Worst thing it can do is to bring the price down on that one exchange and create an excellent arbitrage opportunity for traders to make a lot of money by buying cheap bitcoins on said exchange.

Thirdly the drop we had recently is one of the most common types of drops that we see almost every month in bitcoin market! It is a part of bitcoin bull run.

And finally here is 1,858 transactions that have a bigger output than 3633BTC that you mentioned ranging from 3633BTC to 116,010BTC and all took place between 31 Jan to 22 Feb which is during the time bitcoin price was rising. If anyone wants to make up random stories about that 3633BTC they have to make up the same stories about these 1858 transactions too!
https://blockchair.com/bitcoin/transactions?q=time(2021-01-31..2021-02-22),output_total(363300000000..)&s=output_total(desc)#f=block_id,hash,time,output_total

[Darker45]

I bet this theory is based on no solid facts. Regardless, whether this theory turns out factual or not, what's the fuss? It is no big deal. If F2Pool wants to dump that much Bitcoin through exchanges or even on a single exchange only, it has every right to do so. And I guess the people behind this action are themselves very much aware that the volume as well as the demand could easy absorb their sell order/s.

At this moment, BTC has already climbed up again to $51,000. It will probably take no time at all before BTC creates another ATH once more.

[Poker Player]

I bet this theory is based on no solid facts.

The story here is full of holes.

I guess that the guy who wrote the article, as the last dump was attributed to sales by F2pool, went looking for transactions in this recent dump to explain what had happened.

[stompix]

Less than 4000 BTC are not big to dump the market. One Binance, 173,200 BTC has been trading in 24 hours. How 4000 BTC can manipulate the 173,200 BTC in a day?

Because you can make 1 trillion in volume with 1 BTC if you have both the both and the exchange capable of handling so many transactions.
Now a simple 500BTC would drop the price 1700$ on Binance, with all those 100k BTC in volume, there is depth shown beyond that step but probably an instant dump of 4000 BTC would reach $40K.

Think of it as moving around 4l of water in a 5l bucket, you can carry like this thousand and thousands of liters of water with not a drop spilling, put at one point 6l in it and you have spilled 20%.

This theory actually lines up very well with what is going on in the market

The problem with this theory is that since January everyone is claiming F2Pool was dumping coins that for it to be true the pool would have to mine all the blocks and at 25BTC per block reward on top of that.

This theory actually lines up very well with what is going on in the market because on the cards at the moment Michael Saylor is about to buy $1 billion of Bitcoin over the next few days. Of course if he were to buy when Bitcoin was peaking at $58,000 then he would send the bull market into a euphoria, but with F2Pool crushing the spirit of crypto investors, his buy order will be easy to fill and when he sends out confirmation of its completion, investors in crypto have historically reacted very positively to such news.

Oh, it makes total sense now!
So F2Pool sold coins crashing the price in order for their investor to buy coins at a cheaper price and not for one moment they have thought of actually selling the coins directly to him and avoid losing money on both the coins sold at junk price and the revenue in mining.
Do you know why those guys have billions to invest? Because they don't do stupid schemes like this. 

[Tstar]

Interesting theory from financial daily City AM:
...

I really cannot understand the people who genially believe in the theory that a "3633 Bitcoin in a single transaction" ($0.181bn) to disrupt with %22 a market with a daily volume of $150bn+?!

Bitcoin is volatile; Bitcoin is moving. Imagine what will happen when Tesla decides to cash-out.

[DaveF]

Big yawn.
Some people were talking about this the beginning of the month.
Without showing the txids and all the other info and proof it's f2pools coins and not a miners it's all just crap.

And, you know what. It's all crap anyway, coins are going to mined, moved sold. Then sold again and again and again.

Someone or several people moving and selling don't mean anthing.

Yeah the price dropped, it will go again. Then down then up then down....

Kind of like when in late 2017 it was almost $20k then by the summer 2018 it was $6k or so and people were running around screaming the sky is falling.

-Dave

[TravelMug]

Selling their stash of bitcoin to make profit? - Logical

Selling their stash of bitcoin to stop this bull run - Non sense

And this is not the first time that we have heard this kind of argument, and to be fair with F2Pool there are other big mining companies in the past who have been accused of dumping their bitcoin. So nothing is new here, just another of those conspiracies when we see the price going south.

[Willitivity]

The story doesn't add up coz I don't see any reason why F2pool would be interested in crashing the market when they actually need it up for as long as possible so they can profit off their mining operations regardless of the increased difficulty and decreased block rewards.  

Less than 4000 BTC are not big to dump the market. One Binance, 173,200 BTC has been trading in 24 hours. How 4000 BTC can manipulate the 173,200 BTC in a day?

4000 BTC  which is about $200M at the current prices can cause a significant amount of damage to the current Bitcoin price. It can even act as a catalyst promoting panic dump.

[androyster]

The story doesn't add up coz I don't see any reason why F2pool would be interested in crashing the market when they actually need it up for as long as possible so they can profit off their mining operations regardless of the increased difficulty and decreased block rewards.  

Less than 4000 BTC are not big to dump the market. One Binance, 173,200 BTC has been trading in 24 hours. How 4000 BTC can manipulate the 173,200 BTC in a day?

4000 BTC  which is about $200M at the current prices can cause a significant amount of damage to the current Bitcoin price. It can even act as a catalyst promoting panic dump.

So what do you purpose to do about it if true?  Nothing. 

[mapsfly]

So F2Pool sold coins crashing the price in order for their investor to buy coins at a cheaper price and not for one moment they have thought of actually selling the coins directly to him and avoid losing money on both the coins sold at junk price and the revenue in mining.
Do you know why those guys have billions to invest? Because they don't do stupid schemes like this. 

Why did they decide to massively dump their coins all at once? You are saying that that is a stupid reason, but you fail to go on to say what is the smart reason? please enlighten us?

It's well documented F2Pool is dumping their coins to drive the price down.

[androyster]

So F2Pool sold coins crashing the price in order for their investor to buy coins at a cheaper price and not for one moment they have thought of actually selling the coins directly to him and avoid losing money on both the coins sold at junk price and the revenue in mining.
Do you know why those guys have billions to invest? Because they don't do stupid schemes like this. 

Why did they decide to massively dump their coins all at once? You are saying that that is a stupid reason, but you fail to go on to say what is the smart reason? please enlighten us?

It's well documented F2Pool is dumping their coins to drive the price down.

So, EYEs wide OPEN investors.  BTC is volatile.  It's also made hundreds of thousands millionaires.

[tinopener]

There is even head scratching about the City AM theory on bitcoin.com now:

https://news.bitcoin.com/bitcoin-dump-exchange-inflow-whale-sells-2700-coins-f2pool-hawks-3633-btc/

They are even asking for people for their comments on it

[davis196]

I might be wrong,but I think that Bitcoin mining pools actually want the BTC price to go up.
I'm not an expert,but the increasing BTC price means higher transaction fees,which means more revenue for the Bitcoin miners.What's the point of causing a price dump,just for the sake of short term profits,while reducing the mining revenue from transaction fees in the long term?That doesn't make any sense.
4000BTC are not enough to cause a price dump,just like the other forum members said.
I assume that this theory is made up just to sh*t over F2Pool.

[NeuroticFish]

I'm not an expert,but the increasing BTC price means higher transaction fees,which means more revenue for the Bitcoin miners.What's the point of causing a price dump

Although such a dump, as you also said, doesn't affect the price much, I'll ignore that part and answer like it would have meant a price drop.
The transaction fees don't rise when the price is big. The transaction fees rise when there are big price fluctuations. This means that a large dump has the potential of rising the fees.

There is even head scratching about the City AM theory on

I don't think that BCashers' website can be seen as a reliable source of info. It's more a click-bait site to get more users tricked to buy their altcoin.

[cryptomaniac_xxx]

I might be wrong,but I think that Bitcoin mining pools actually want the BTC price to go up.

Of course, who wouldn't want bitcoin price to go down? Maybe except for those who wanted to buy at a low price.

I'm not an expert,but the increasing BTC price means higher transaction fees,which means more revenue for the Bitcoin miners.What's the point of causing a price dump,just for the sake of short term profits,while reducing the mining revenue from transaction fees in the long term?That doesn't make any sense.
4000BTC are not enough to cause a price dump,just like the other forum members said.
I assume that this theory is made up just to sh*t over F2Pool.

They probably need some fiat to maintain their operations and by no means wanted to crash the price of bitcoin. So it's going to be a cycle for them, as sooner or later this companies will need fiat. And I do agree that 4000BTC can't cause any significant dent in the price.

[stompix]

So what do you purpose to do about it if true?  Nothing.  

And what do you propose to do? Run to the hills, hide in a cavern, dump your coins, light up some pitchforks and burn F2Pool servers?
Probably some of you are forgetting one thing, my coins my decision what to do with them!
What's your plan, a maximum acceptable sell of 5$ per person, communist ratios for selling?

It's well-documented F2Pool is dumping their coins to drive the price down.

No, it's not! There are zero proofs, just a lot of if, can, maybe, possible, seems like.

Why did they decide to massively dump their coins all at once? You are saying that that is a stupid reason, but you fail to go on to say what is the smart reason? please enlighten us?

If something is stupid how can you look at it from the smart point of view?
And second, I don't have to explain something that you don't have solid proof it happened.

[androyster]

So what do you purpose to do about it if true?  Nothing.  

And what do you propose to do? Run to the hills, hide in a cavern, dump your coins, light up some pitchforks and burn F2Pool servers?
Probably some of you are forgetting one thing, my coins my decision what to do with them!
What's your plan, a maximum acceptable sell of 5$ per person, communist ratios for selling?

It's well-documented F2Pool is dumping their coins to drive the price down.

No, it's not! There are zero proofs, just a lot of if, can, maybe, possible, seems like.

Why did they decide to massively dump their coins all at once? You are saying that that is a stupid reason, but you fail to go on to say what is the smart reason? please enlighten us?

If something is stupid how can you look at it from the smart point of view?
And second, I don't have to explain something that you don't have solid proof it happened.

Me? I'm holding until I retire.  And that's about 10 years.  And nothing anyone does (including a few pools taking profits) is going to change that.

[mapsfly]

If something is stupid how can you look at it from the smart point of view?
And second, I don't have to explain something that you don't have solid proof it happened.

There is enough circumstantial evidence from cryptoquant.  You can sit this one out.