Bitcoin Insider Trading Suspicions Take Root Following Grayscale Win, What’s Happening?
August 30 2023 - 8:45AM
NEWSBTC
Crypto asset manager Grayscale recently won against the Securities
and Exchange Commission (SEC) in court, propelling gains in the
price of Bitcoin in the past 24 hours. According to the case
details, a US appeals court ruled on Tuesday, August 292r, that the
SEC was wrong to reject an application from Grayscale to convert
the Grayscale Bitcoin Trust into a spot Bitcoin ETF. In the hours
following the decision, Bitcoin jumped from $26,500 to test the
$28,000 resistance zone. On-chain data has shown that the amount of
BTC available for trading on crypto exchanges increased noticeably
just before the verdict. This has sparked some rumors of insider
trading, hinting that some investors knew about the Grayscale win
beforehand and looked to capitalize on the oncoming Bitcoin price
spike. A Surge In Bitcoin Supply On Exchanges Crypto trading expert
Ali Martinez took to social media platform X to share a Santiment
chart data detailing the spike in exchange supply. According to
on-chain data, around 30,000 BTC was sent to crypto exchanges in
the hours before the ruling, raising questions of market
manipulation. This would take the exchange supply of BTC at the
time from 1.13 million to 1.16 million. Related Reading: Renowned
Economist Explains Why Grayscale’s Win Is Not Good For Bitcoin
Price Signs of #Bitcoin manipulation? Check this out! Just before
#Grayscale legal victory against @SECGov, around 30,000 #BTC were
sent to #crypto exchanges — boosting exchange supply from 1.13
million to 1.16 million $BTC. pic.twitter.com/j8xgoAzLrs — Ali
(@ali_charts) August 29, 2023 While the flurry in exchange supply
could have been from a few traders who knew before the ruling
beforehand, it could also be from many investors, as the entire
crypto community has been awaiting the Court’s decision.
According to Santiment, 14,596 BTC worth $388.3 million were added
to wallets holding around 10-10,000 BTC the day before news of the
court’s decision. 🐳 Whales & sharks may have known
a thing or two about the outcome of the #Grayscale and #SEC
lawsuit, with 10-10K $BTC wallets accumulating a collective $388.3M
in $BTC the day leading up to the news. They were handsomely
rewarded with a +6% price jump. https://t.co/j28CwVYKS6
pic.twitter.com/cx5rRuS6IV — Santiment (@santimentfeed) August 30,
2023 Reactions From The Crypto Market The price of Bitcoin spiked
in the hours following the news, with Bitcoin briefly crossing over
$28,000. The cryptocurrency has, however, since retraced and is now
trading at $27,415. As expected, altcoins have followed
Bitcoin’s price movement and spiked in price. Ethereum and Bitcoin
Cash have led the altcoin market in gains, up by 4.37% and 15.01%,
respectively in the past 24 hours. Related Reading: Party In
The USA: Ripple Gets Ready To Properly Celebrate Triumph Over SEC A
large number of short positions have also been liquidated, with BTC
experiencing short liquidations of $50.86 million in the past 24
hours. Grayscale has also reacted positively to the news, as the
company’s stock price is up by over 17% in the past 24 hours. The
Grayscale discount, which is the gap between the market value of
Grayscale’s Bitcoin Trust shares and the value of underlying
Bitcoin, has also dipped below 20% for the first time since
2022. BTC bulls hold $27,300 | Source: BTCUSD on
Tradingview.com Featured image from Unsplash, chart from
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