Bitcoin [BTC] transactions on the darknet double over 2018; crosses $2 million per day

Bitcoin, the world’s first cryptocurrency, rose to prominence due to Silk Road, say some speculators while others disagree. A recent study by Chainanalysis reveals that the daily Bitcoin transaction on the darknet has increased drastically.

As per the reports by Chainanalysis, the transaction volume for Bitcoin on the darknet was at $700 million by the end of 2016 and it fell down to $700 at the start of 2018. The reduction in the transaction volume is attributed to the closing of major players like AlphaBay and Hansa in mid-2017.

AlphaBay and Hansa were both online darknet markets which operated on an onion service of the Tor network. Both of the mentioned companies shut down in July 2017.

Moreover, Kim Grauer, a senior economist at Chainanalysis, said that the volume began to rise steadily after this. He also stated:

“The reason for that drop is more law enforcement activity,” Grauer said. “It would be misleading to think that this year it (the volume) will go down.”

Bitcoin is still being used in darknet due to the fact that the identities of the persons using them remain anonymous. Bitcoin’s volatility and price fluctuation have dissuaded a lot of users in the institutions to step away from it.

Moreover, Grauer, continued:

“For someone who wants to buy something on a dark marketplace, the fact that bitcoin price is fluctuating doesn’t really matter.”

The report also mentioned that the darknet saw $2 million worth of Bitcoin transactions per day, which was double the volume observed at the start of the year 2018.

Furthermore, 2019 could be a year when the rise in the volume of transactions on the darknet could reduce, said Grauer and it could be due to regulators and law enforcement stepping into the cryptocurrency market.

@RyanPafumi, a Twitter user, commented:

“Let’s not forget when Chase paid $2 billion in fines to settle the $76 billion they laundered for Bernie Madoff.
Deutsch Bank headquarters raided a year later on more money laundering through Panama and Virgin Islands…”

Author: Akash Girimath
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Bitcoin [BTC] flash drops within 30 minutes to settle below $6900: Silk Road to blame?

The cryptocurrency market started off bullish this month but it seems like the “good” days (of the bearish nature) were here to stay for a longer time. Bitcoin [BTC] flash dropped within 30 minutes in the market and reached below $6900 on several exchanges. Bitcoin lost almost $500 in under five minutes.

According to CoinMarketCap, at the time of writing, Bitcoin was trading $6985 with a market cap of $122.18 billion.

Bitcoin price drop below $7000 | Source: Trading View

The market speculates that the reason for this could be the recent movements of the Bitcoin wallet which is reportedly connected to Silk Road accounts. Recently, a Reddit user spotted that almost $1 billion BTC was on the move. These coins were transferred to Bitfinex, Binance and BitMEX in small portions.

Over the past 10 days, the wallet holder had transferred over 11,114 Bitcoin to Bitfinex, one of the leading exchange platform in the world and 4,421 Bitcoin was transferred to Binance, the leading exchange in terms of trade volume. In addition, over 210 Bitcoin was sent to BitMEX, the top Mercantile exchange platform.

In addition, earlier today, Bitcoin [BTC] was trading at its highest at $24000 in one of the cryptocurrency exchange platform in Iran as the government legalized cryptocurrency mining in the country.

Bitcoin was not the only one to bear the brunt of this flash crash. Altcoins have started to bleed as well. Ethereum [ETH] has dropped by more than 10% in just one hour and is trading at $258.86. XRP and Bitcoin Cash, the other leading cryptocurrencies in the market has fallen by more than 9%.

Moreover, Bitcoin Shorts has spiked up in the market and the speculation of Bitcoin price drop has been doing its rounds in the market since the beginning of this month. The data presented on CoinMarketCap shows that at present, the biggest trading volume for Bitcoin is on BitMEX, $3.3 billion.

Robby16, a Reddit user said:

“Shorts mate. Whale vs whale. Longs getting liquidated and rekt. Over 10om tether printed and sent to bitfinex to short.”

Uelga, another Redditor said:

“Crypto flash sale started again or what?”

Crypt0jakd, a Reddit user said:

“Here’s the bull market this delusional sub thought was imminent. Just a bunch of children screaming lambo”

Adam Furbey, a shorts trader from Christchurch spoke to AMBCrypto about this drop and says,

“Is this manipulation again? Like who settles for Bitcoin at $6890? This looks like a deliberate dump. This shit will keep everyone off crypto. Shorts is shit”

His friend, Remy, however, had a different opinion,

“This is when you should get into crypto, people like Adam run off from crypto, they are what I call weak hands. It’s good that they get out. We will have stronger hands.”

Author: Priya 
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Reactivated SilkRoad Wallet Transfers $100mn to Bitfinex & Binance, Bitcoin Price Pumping Up

The last couple of weeks Bitcoin price are slowly and steadily moving up. While many believe its happening due to the news built-up around Bitcoin ETF, according to Redditor “sick_silk”, it could be because of a huge movement of Bitcoins and its forks from the wallets that were inactive for almost 4 years carrying USD 1 billion of cryptocurrencies.

USD 100 mn lands in Bitfinex and Binance

The Redditor, who has continuously been on the trail investing the wallet containing over USD 1 billion of BTC, BCH, and its forks believe this wallet belongs to the new defunct dark web marketplace SilkRoad. According to his recent post, coins worth USD 100 mn, from the wallet that was inactive since 2014,  has been moved to Bitfinex and Binance wallets indicating the recent rise in prices could be because of these activities. To explain the same, he has built a graph in order to deep dive into the transactions originated from the 111,114-BTC wallet and to follow it.

 Working on this graph indicating the coin movements to and fro from these wallets, he has concluded that at least 15,593 BTC originated from the 111,114-BTC wallet have been moved to Bitfinex and Binance wallets which represent 14% of the original funds

Apart from these two exchanges, he has also been able to track that around 210 Bitcoin have been transferred to Bitmex in 6 transactions. At Bitmex, he also noted that 350 BTC transferred from Bitmex wallets though, maybe after being “washed out”

Matching the dates and activities, the Redditor ends his post by saying

“Surprisingly Bitcoin price is pumping since those funds were starting to be transferred to Bitfinex and Binance wallets (see Binance transactions’ list, August 11th) How do you think this will impact the market?”

Redditors initial investigation regarding this issue

A few days back, “sick_silk” the Redditor posted saying that according to him the owner of a huge SilkRoad related wallet is moving funds actively, dividing it in chunks of 100 coins by sub wallets. The original wallet owned 111,114.62 $BTC / $ BCH, which, as of last week, valued ~ $844M (without taking into account other #Bitcoin forks).He had also noted that the chunks have been divided over time to 60,000 coins then to 30,000 / 20,000 / 10,000 / 5,000 / 500 and now 100 coins.

He also noted that last movements on these sub wallets, before these recent ones, were 4 years and 5 months old (March 9th, 2014) which was pretty close to the SilkRoad take down the date by the FBI.

On being questioned about the wallet, the Redditor said that if it was not Silkroad, the most likely, this wallet belongs to Mt Gox who too announced its public rehabilitation plan. He states that:

“a MtGox cold wallet that has been seized or is still owned by MtGox: in fact the wallet funds moved in March 2014 right after MtGox filed for bankruptcy one month earlier in February 2014; these movements dates are really similar to the 200,000 lost coins “found” by Karpeles which moved March 7th, 2014”

More than the source, the Redditor felt it was more important to bring to the notice of the community, that there could be a dump in the markets which would affect the prices significantly.

It would be interesting to see what would be the next post and where does this lead to.

Whether it is SilkRoad, Mt Gox or any other Whale for that matter, such large movements of cryptocurrencies are always scary. It also seems in the past as well when such large movement, especially in Bitcoin, happen this is a huge dump that happens in the market, having a significant impact of prices. And if what redditor says is true, we could see the Bitcoin price spiraling downwards soon.

Author: Nilesh Maurya
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