Top 5 Largest Bitcoin Crashes in History CoinCodex

r/Bitcoin recap - March 2018

Hi Bitcoiners!
I’m back with the fifteenth monthly Bitcoin news recap.
For those unfamiliar, each day I pick out the most popularelevant/interesting stories in Bitcoin and save them. At the end of the month I release them in one batch, to give you a quick (but not necessarily the best) overview of what happened in bitcoin over the past month.
And a lot has happened. It's easy to forget with so much focus on the price. Take a moment and scroll through the list below. You'll find an incredibly eventful month.
You can see recaps of the previous months on Bitcoinsnippets.com
A recap of Bitcoin in March 2018
submitted by SamWouters to Bitcoin [link] [comments]

$1B bitcoins on the move: MtGox vs SilkRoad origin and BTC price impact discussed

$1B bitcoins on the move: MtGox vs SilkRoad origin and BTC price impact discussed
Preamble: it seems that my post was censored and removed on bitcoin... from now I will only publish my articles on btc and crosspost it. Freedom and freespeech matter to me.
--

This is the 4th post of a series of articles dedicated to investigate $1B worth of bitcoins (111,114 BTC/BCH/... BXX) that were dormant since 2014 and started moving actively. The BTC coins were originally located at this address (1933phfhK3ZgFQNLGSDXvqCn32k2buXY8a).
  • The facts that part of this funds (>13%) have been transferred in the past month to Bitfinex, Binance and Bitmex exchanges is discussed here.
  • The origin of the bitcoins was originally discussed here.
  • A deep-dive into the wallet activity was discussed here.

Today I am writing a short update to discuss the origin of the funds and some events that could be related both to this wallet and yesterday's price crash.

Wallet's origin

This question has been discussed a lot by the crypto community in the past year.
Here is a summary of the most probable hypothesis for the 1933p wallet's origin:
  1. a SilkRoad user or DPRs wallet per this post: https://bitcointalk.org/index.php?topic=310600.0
  2. 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 (1dda0f8827518ce4d1d824bf7600f75ec7e199774a090a947c58a65ab63552e3), just 2 days before the movements on the wallet we are talking about here.
  3. a whale wallet since the major part of the 111,111 coins are coming from a very old deposit of 37,421 coins processed on June 21st, 2011 making this an early adopter's wallet (70d46f768b73e50440e41977eb13ab25826137a8d34486958c7d55c5931c6081)

Wizsec, a prominent Bitcoin security expert, seems to be pretty sure that the wallet belongs to a MtGox hodler and early investor, who is not a DPR or a SilkRoad user, per his Twitter post: https://twitter.com/wizsecurity/status/1037030003068653569
Finally, Wizsec and I agree that this wallet is not CSW`'s wallet despite it is mentioned in several court documents. Wizsec spent a lot of time debunking CSW's ownership claims earlier this year: https://twitter.com/wizsecurity/status/968337084837781504

What do you think about this wallet origin?
`
BTC price crash

Also, I wanted to report some events that could be related to this 1933p wallet activity:

  • $100M USDT were transferred (reported by u/whalecheetah) while the 1933f wallet owner was in the process of transferring approximately the same amount to several exchanges.
(update) Here is a link provided by u/jesquit: https://www.reddit.com/btc/comments/9cj208/bitcoin_surge_expected_as_100m_tether_goes_to
  • 10,000 BTC buy order was filed last night on Bitmex with 8,030 BTC transferred from a Bitfinex user wallet while the 1933p wallet owner transferred approximately the same amount of BTC to Bitfinex since August, 24th.
(update) Here is the actual BTC transaction: https://www.blocktrail.com/BTC/tx/f2465a1225531d33696380f06034499a52d707f85ee6ae1419885980011f6e25 ,
with its Bitfinex inputs:
1Kr6QSydW9bFQG1mXiPNNu6WpJGmUa9i1g (3,000)
1Kr6QSydW9bFQG1mXiPNNu6WpJGmUa9i1g (2,000)
1Kr6QSydW9bFQG1mXiPNNu6WpJGmUa9i1g (2,000)
1Kr6QSydW9bFQG1mXiPNNu6WpJGmUa9i1g (1,029.98)
and output to Bitmex:
3BMEXqGpG4FxBA1KWhRFufXfSTRgzfDBhJ (10,000).

Was this deal prepared or was the buyer a bitcoin angel?

--
In the light of September 6th price crash, do you think the $100M transferred to the exchanges caused it?

https://preview.redd.it/npazsakt1uk11.png?width=2277&format=png&auto=webp&s=1806829761fb30619b4796961b9616875f1ca602
submitted by sick_silk to btc [link] [comments]

A word of caution. All major exchanges are not even fiat gateways. The actual fiat in the system is likely grossly overestimated. Crypto is decoupled from USD. Implications.

First of all i should disclose i'm fully out of crypto since last Sunday, i'm just waiting for my EUR wire from Bitstamp as that has been my gateway since 2014. I would like to thank bitcoinmarkets for the good times, i've been around for a long time but not really participating that much, and even when I did i used throwaways. I decided to make this topic as a warning and to explain why I got out and why I think you should be very careful.
So we have a situation in which:
1) 80% or more of trading is in USDT (tether)
2) Coinmarket cap is an accomplice to Bitfinex which implies USDT-USD parity. To which degree this is intentional, irresponsibility or just incompetence I would not know. Basically conimarketplace lumps all USDT trades and prices with actual USD trades and prices. If you go there https://coinmarketcap.com/ and try to select PAIR, you get THIS. No USDT, even though most exchanges are USDT. Even if most of liquidity is USDT. Again, this is a major factor in implying parity along with what Bitfinex/Tether try to do. As if this wasn't enough, they also willingly or stupidly inflate USDT price itself. I have to remind you Coinmarketcap is THE point of reference for all cryptosphere. It's oscilating Alexa rank is 100-400. Betfair (real life gambling company) for example uses coinmarket price average for their own system. etc.
3) If/when tethebitfinex crashes, not only does bitfinex crash, it will crash all crypto pairings using USDT on all exchanges using USDT.
4) There are very few fiat gateways. Until recently I assumed the major(top) exchanges have some kind of fiat pairing. I mean.. any respectable exchange would have some way of actually getting money in and out, right? I didn't even think to check. Well, they don't. Literally all the major exchanges are USDT (and/or another stablecoin or proprietary coin) and nothing else. No USD, no EUR, no fiat whatsoever. https://coinmarketcap.com/rankings/exchanges/ . Only the 11th one has actual USD pairing. Didn't check lower but most exchanges don't have fiat. I did a full check on Binance myself as it's the biggest exchange and I had an account there for lulz. There is no fiat.
What does this mean? It means that an allegedly 200 BILLION market cap of all crypto has a fiat gateway of only a couple of exchanges. Most exchanges not using any fiat are not only immune to the risk, they offload risk on the much smaller exchanges that are fiat gateways. And on clients, of course. The cash side of the actual exchanges would need to have to siphon even a fraction of this are unimaginable. If any of these exchanges use crypto to evaluate their own fiat balance (it is illegal but crypto is hardly regulated or audited), they're fucked.
5) If the first four points looked bad, this one is by far the worst. The system is running on a presumed liquidity provided by Tether and on presumed USD capital. Even if tether was legit it's just 2b USD rolling 200b USD. And that 200b USD is just presumed quantity of USD that is in. We don't know how much USD is in the system, there could be and there probably is way less, as over the past 8 years or so crypto ran mostly on funny exchanges that could "provide" whatever USD value they wanted. More so, even if they went bust, people would usually get to withdraw crypto and store it on some other exchange. Even when an exchange was slowly withering, people just pulled out crypto and the exchange actual liquidity was hardly tested out. Or btc-e crashing or MtGox crashing. Their cash side crashed but "crypto" side did not crash. It was bailed out so to speak. So we have crypto running around that should've been worth 1/10 or 1/100 of it's price but it's instead running on par value with crypto on legit exchanges. This grossly inflates price.
Even if tether (or other stablecoin) is legit, it can be drained in a couple of hours. What happens to the pairings of crypto/USDT? People just trade one bitcoin at the presumable price of 6k for 6k USDT that are 100% backed but have no value because there's no USD in the treasury? Who is stupid enough to deposit USD there to get stuck waiting for another fool to bail him out by getting himself stuck?
edit: [Even if tether is 1%, it holds much more assumed/created value, which is the actual issue. Look at it this way. It only adds 1 cent to a real dollar market buy order for example. Each buy order made in a system that implies USDT:USD parity is now worth 1% more than a true USD purchase. Now repeat that buy order millions of times. It's not 1.01+1.01 times 1 million. It's more like 1.01$1.000.000 Each added value comes from USDT injection and USDT has to be liquid on the way down as well. It's added value to the market value is NOT it's market cap. That's a shitfest all "stablecoins" inject into the market, no matter how backed or audited they are.]
As I was saying, all the exchanges that are not holding any fiat are immune to any crash or actual liability. If/when cryptos fail, they'll give you back any number of cryptos/stablecoins you had, even if they're worthless. It's just entries in a database. If/when USDT fails, all it's corresponding crypto prices will go to infinity. If you're holding any USDT, you can't get out of the exchange because 1 btc will cost infinity. If you're in any margin position, no matter where your stops are you'll get margin called instead, as stops are just suggestions in high/extreme volatility. You can't get out through fiat cause there's no fiat.
Your only hope is you were actually holding crypto and they don't block withdrawals. Best case scenario you move your crypto to a fiat gateway exchange and hope to cash out there as fast as possible because it will have had become evident that cryptos were overvalued because of USDT (and even hypothetical USD in the system). Will most likely be too late as people that were already in fiat gateway exchanges already sold/cashed out. There will be enormous sell pressure. And no buyers.
The whole stablecoin issuance is idiotic and I just hope it crashes now and we won't see another bubble built on presumed capital, cause that will hurt way more people. All of this is a mess. Crypto is completely decoupled from real fiat now. The potential money that are in the crypto sphere is exponentially greater than available money to trade out of. Or maybe we should be grateful for stablecoins for finally crashing a system that would've crashed anyway in the long run.
submitted by 5ty54y5yh45 to BitcoinMarkets [link] [comments]

$1B bitcoins on the move: MtGox vs SilkRoad origin and BTC crash discussed

$1B bitcoins on the move: MtGox vs SilkRoad origin and BTC crash discussed
This is the 4th post of a series of articles dedicated to investigate $1B worth of bitcoins (111,114 BTC/BCH/... BXX) that were dormant since 2014 and started moving actively. The BTC coins were originally located at this address (1933phfhK3ZgFQNLGSDXvqCn32k2buXY8a).
  • The facts that part of this funds (>13%) have been transferred in the past month to Bitfinex, Binance and Bitmex exchanges is discussed here.
  • The origin of the bitcoins was originally discussed here.
  • A deep-dive into the wallet activity was discussed here.

Today I am writing a short update to discuss the origin of the funds and some events that could be related both to this wallet and yesterday's price crash.

Wallet's origin

This question has been discussed a lot by the crypto community in the past year.
Here is a summary of the most probable hypothesis for the wallet's origin:
  1. a SilkRoad user or DPRs wallet per this post: https://bitcointalk.org/index.php?topic=310600.0
  2. 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 (1dda0f8827518ce4d1d824bf7600f75ec7e199774a090a947c58a65ab63552e3), just 2 days before the movements on the wallet we are talking about here.
  3. a whale wallet since the major part of the 111,111 coins are coming from a very old deposit of 37,421 coins processed on June 21st, 2011 making this an early adopter's wallet (70d46f768b73e50440e41977eb13ab25826137a8d34486958c7d55c5931c6081)

Wizsec, a prominent Bitcoin security expert, seems to be pretty sure that the wallet belongs to a MtGox hodler and early investor, who is not a DPR or a SilkRoad user, per his Twitter post: https://twitter.com/wizsecurity/status/1037030003068653569
Finally, Wizsec and I agree that this wallet is not CSW`'s wallet despite it is mentioned in several court documents. Wizsec spent a lot of time debunking CSW's ownership claims earlier this year: https://twitter.com/wizsecurity/status/968337084837781504

What do you think about this wallet origin?
`
BTC price crash

Also, I wanted to report some events that could be related to this 1933f wallet activity:
  • $100M USDT were transferred (reported by u/whalecheetah) while the 1933f wallet owner was in the process of transferring approximately the same amount to several exchanges;
  • a 10,000 BTC buy order was filed last night on Bitmex with 8,030 BTC transferred from a Bitfinex user wallet while the 1933f wallet owner transferred approximately the same amount of BTC to Bitfinex since August, 24th. Was this deal prepared or was the buyer a bitcoin angel?

In the light of this yesterday's price crash, do you think the $100M transferred to the exchanges caused it?


graph of transactions originated from 1933f wallet
submitted by sick_silk to Bitcoin [link] [comments]

Bitcoin FUD - Mt Gox, Binance Hack, SEC Regulations! #314 Bitcoin Flash Crash, Binance Hack & Mt Gox News, Coinbase Indexfonds & TrueUSD Crypto Market Crash - Bad NEWS! - Binance Hack Rumor/MT Gox Sell OFF/SEC-Reg/Bittrex Country Ban Mt. Gox - Reason behind Bitcoin Crash ??? , Twitter ban Crypto Ads The Strange Binance Hack, Mt Gox Crashing BTC, And Twitter Spam Was Binance Hacked? Mt Gox Trustee Money Dump Crashes Markets? Steemit Grows Steem Dollars for win Crypto Market Tumbles With Bad News - Binance Hack, Bittrex Country Ban, Mt Gox Sell Off & SEC MT. GOX TO CRASH BITCOIN AGAIN! - A HISTORY OF MT. GOX SCANDAL STORY The EXACT Reason Behind The March Bitcoin Market Crash Explained MT. GOX & Binance

In February 2014 Mt Gox suspended trading and closed its website. On top of this, they filed for bankruptcy and began liquidation proceedings in April 2014. To date, the Mt. Gox crash is Bitcoins worst crash. From $1,163 to $152 in roughly 400 days, this was one of the longest downtrends Bitcoin has ever experienced. This is one crash where there is a very clear defined narrative that ... The largest catalyst for this crash was the hacking of Mt.Gox, by far the biggest Bitcoin exchange at the time. The exchange was compromised by a hacker who gained access to customer accounts and artificially pushed the price of Bitcoin on the exchange to $0.01. Even though the crash to 1 cent was artificial, the hack resulted in a substantial hit to confidence in Bitcoin and played a major ... Mt Gox was hacked and bankrupt in February 2014. This one incident tanked Bitcoin and forced it into obsolescence for over two years. On the day Mt Gox suspended withdrawals – 7 Feb 2014 – Bitcoin’s price was $725. It didn’t hit $725 again until 16 June 2016. Now the curse of Mt Gox is back. And thanks to how the legal system works, it ... Mt. Gox war damals die weltweit größte Bitcoin Börse. Im Februar 2014 ereignete sich der bislang größte Hack in der Kryptowährungsgeschichte. Rund 850.000 Bitcoin wurden von der Börse entwendet, woraufhin Mt. Gox seinen Betrieb einstellen musste. Die geschädigten Investoren und Geschäftspartner wurden seitdem noch nicht entschädigt. Von den 850.000 Bitcoin sind nur 200.000 wieder ... The hacking of Mt.Gox leading to the crash of Bitcoin price in 2014.Bitcoin Price plunged from US$1200 to about US$135 in 2014. The Mt.Gox incident badly damages the image of Bitcoin, because Bitcoin is promoted as a safe crypto currency and difficult to be stolen by its crypto technology. Lange Zeit war Mt. Gox die größte Bitcoin Börse der Welt. Im Februar 2014 wurde sie in einem, bis heute Beispiellosen, Angriff gehackt und über 850.000 Bitcoins verschwanden (Wert heute ca. 6,8 Milliarden Euro). Von den verschwundenen Bitcoins sind bis heute nur etwa 200.000 wieder aufgetaucht. Der Rest bleibt verschwunden. Mt. Gox hat kurz ... New report shows Mt. Gox leaked Bitcoin for years before collapse in 2014 By Maria Santos Last updated on January 2, 2018 at 00:00 No Comments Mt. Gox started leaking BTC in 2011 and was “practically depleted of Bitcoins by 2013” , says a new report released by WizSec, a Japanese group that has been investigating the exchange’s downfall .

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Bitcoin FUD - Mt Gox, Binance Hack, SEC Regulations!

talking about an unusual form of hacking on binance today. as well as an additional recently unnoticed reasoning of the december - february crypto price dip. and the twitter spam problem. Sign up ... The crypto market went tumbling downwards today as a load of bad news came along- Binance hack rumor, Mt Gox Trustee Sells off all Bitcoin, SEC wants to regulate all crypto exchanges, and Bittrex ... In this video Decisions made by Mt. Gox are explained and also the impact on market is explained ... Mt. Gox - is this the reason behind Bitcoin Crash ??? Mt... Willkommen zur Bitcoin-Informant Show Nr. 314. Heute geht's um folgende Themen: Bitcoin Flash Crash, Binance Hack & Mt.Gox News, Coinbase Indexfonds & Bittrex listet TrueUSD als Gegenstück zum ... The Curse of Mt Gox Still Haunts Us - Bitcoin Crash - Duration: 9:24. Bitraged 5,615 views. 9:24 . 80 Trillion Dollar Bitcoin Exit Plan - Duration: 22:12. Mineable 340,482 views. 22:12. Mix Play ... Hope you enjoyed the video. If you liked and learnt from it please like this video and share it with your friend and family on Facebook, Twitter, Word of Mouth etc. DONATIONS ♥ BTC ... Bitcoin Blueprint 2.0 🔥 A-Z Profitable Crypto Trading Course 🔥 👉 https://www.btcblueprint.com Free 1 Hour Training - https://bitcoin-blueprint.net/free-tr... Crypto Market Crash - Bad NEWS! - Binance Hack Rumor/MT Gox Sell OFF/SEC-Reg/Bittrex Country Ban Crypto Patrick. Loading... Unsubscribe from Crypto Patrick? Cancel Unsubscribe. Working ... Mt. Gox wont die! It's back in the new cycle again and possibly the reason we have seen such bearish markets as of late. Hopefully this is the end, and bitcoin can rise again!

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