Bitcoin Gold Is Being Manipulated By A Whale Who Owns Half Of Its Supply

The price of Bitcoin Gold is being manipulated in the cryptonews now by a whale who is controlling close to half of its circulating supply. These findings were evaluated in a research which was conducted by an independent trader and analyst who preferred to remain anonymous.

The trader published his findings in a blog post where he said why he believes that a single group of people accumulated their way into a huge Bitcoin Gold position and are now using the supply to control the market.

It all started in August 2018, when Bitfinex margin long positions began their sharp ascent to include almost two million Bitcoin Gold (BTG) in the altcoin news. The exchange makes its margin data information available to the public, which can help gauge the general trader sentiment in a particular coin – for example by comparing the ratio of short and long positions.

in the case of Bitcoin Gold, the strong increase in margin positions was accompanied by lackluster price action. While the coin generally followed the broader crypto market, the price eventually spiraled downwards.

Besides stating that Bitcoin Gold is manipulated now, the analyst estimated that the 1.9 million BTG held at some point in Bitfinex represents between 38% and 48% of its total circulating supply. For those of you who don’t know, Bitcoin Gold was born in 2017 as a network fork from Bitcoin (BTC) created it.

The analyst elaborated on how he reached that figure, stating:

“Over 11 million Bitcoins (BTC) haven’t moved in the last year. Considering big wallets’ unwillingness to claim their coins due to fear of private key leak for a minimal return, it can be argued that a number even larger than 11 million BTGs are inactive or lost forever.”

Then, he said that Bitcoin Gold is manipulated and estimated a figure of 4 to 5 million active BTG. When asked about the media why he is so certain that this is the work of one whale, he explained:

“The accumulation was very consistent and systematic over the course of almost a year, it would be almost impossible for it to be a coincidence that multiple entities were using the exact same system to accumulate.”

Along with this, the analyst conducted a manual analysis of the average entry price for the whale, arriving at a figure of $22.86 as the break-even price for the altcoin now.