A.I. Pinpoints Unusual Market Behavior Prior to Crypto Crash
According to reports Wednesday, September 5th, Multinational investment firm, Goldman Sachs halted initiatives to launch a crypto trading desk. This crucial industry move directly correlated with market value drops for major cryptocurrencies including Bitcoin, Ether, and RIpple. Several days earlier, data analysts noticed a trader participate in a short position of 10,000 BTC equivalent to $74 million despite positive market sentiment.
Digital currency analysts remain uncertain as to why and how this trader made a high volume sudden decision only days before bearish market news was announced. The only logical explanation is that this individual was aware of exclusive insider information.
Speculations suggest the individual may be associated with the financial firm, taking the massive short position just two days before announcing the negatively influential news publicly. However these notions remain unconfirmed. According to CCN reports, newly developed artificial intelligence scanning crypto market data suggests evidence towards the deliberate manipulation of the market by an unknown participant.
The Unexpected Events Explained
Wednesday morning showed significant and unexpected drops in cryptocurrency values across the board including bitcoin, Ether, Ripple and Litecoin among others. Later that afternoon, news of Goldman’s decision to step out of their crypto based project was announced. In response, the cryptocurrency community speculates possibilities of insider trading, as well as purposeful market manipulation in order to lower digital currencies for the benefit of institutional traders.
According to RoninAI’s data analysis of the event, several indications of unusual behaviour was discovered including the sporadic boost in market sentiment moments prior to the significant drop in values. The crypto signal platform’s AI technology picked out market behaviour deemed unauthentic. The timeings associated with these unusual behaviours make for compelling evidence of deliberate market manipulation or some form of insider trading activity.
Analysts expect a rebound of prices once the trader attempts to buy back after taking the step to short 10,000 BTC. However, there is no definitive way to anticipate both short and long term effects on the overall market.