Posted 10 months ago | by @devadmin
Starting on January 15th, the number of Bitcoin outflows from F2Pool, which is currently the largest mining pool with about 15% of the total hash rate, started to increase indicating that the mining pool was dumping BTC. Then on January 17th, daily sales picked up dramatically reaching an amount of 10,000 BTC ($313 million), continuing for three consecutive days before the company returned to its normal selling habits selling hundreds of Bitcoin a day.
— ₿it₿oy (@Bitboy_Crypto) February 1, 2021
This shows that Chinese mining firm F2Pool is a single entity controlling the Bitcoin market right now. According to CryptoQuant, there have been massive outflows from mining pools in recent days with F2Pool being the biggest player. These moves caused the price of Bitcoin to plunge by at least 20% over the past couple of weeks.
This does not necessarily mean that miners sold Bitcoin on the open market. It simply means that they moved the mined BTC out of their original wallet to another wallet or exchange. Although, it’s the more likely scenario over any other given the correlation between events.
However, if F2Pool tried to manipulate the market they may have found that one buyer, in particular, scooped up almost two days’ worth of sold BTC pretty quickly, Grayscale. Grayscale who is failing to keep up with institutional demand purchased 16,240 BTC, going from BTC 616,560 to BTC 632,800 (USD 23,5bn), according to bybt.com.
CryptoQuant CEO Ki-Young Ju listed a series of bearish alerts he received when Bitcoin started plunging on Jan 22nd. As per the data he provided, the Miners’ Position Index went above 2.5, reflecting growth in Bitcoin units that miners moved from their wallets. Subsequently at the same time, CryptoQuant’s All Exchange Bitcoin Transaction Count Inflow surged, showing F2pool as a major BTC depositor.
“The dump might have started from BTC miners in F2Pool,” Ju tweeted. ”569 people deposited BTC in a single block (10 min). 78 miners deposited BTC in a single block (10 min),” he added.
I got these bearish alerts yesterday.
– Miners' Position Index went above 2.5
– 569 people deposited $BTC in a single block (10 min)
– 78 miners deposited $BTC in a single block (10 min)https://t.co/cq974KlrSp pic.twitter.com/F8WqZMGUQq
— Ki Young Ju 주기영 (@ki_young_ju) January 22, 2021
It’s unclear why F2Pool decided to mass-dump their BTC holdings to crash the market at this time. However, tweets from the miner appear as if they are laughing about this and basking in the fact that they can sway the markets. Even in one tweet taunting Bitcoin holders stating they have more BTC to dump in their reserves and this is only 10% of all Bitcoin they have mined over the decades.
We have mined over one million bitcoins in the past decade. What we have sold in the past few weeks only represents less 10% of our reserve. https://t.co/LgSvC3aCqQ
— Chun #trolling (@satofishi) February 1, 2021
At the same time, F2Pool’s founder Chun Wang tried to blame MtGox for the selling stating that it wasn’t them and the wallets were mixed up due to the use of UTXOs.
Not trolling this time.
— Chun #trolling (@satofishi) January 22, 2021
As noted, CryptoQuant’s data has gathered the mining pool’s sell-off as the major catalyst that caused Bitcoin’s price to plunge 20% from $35,498 to $28,732 in just 24 hours. This means that F2Pool is essentially suppressing Bitcoin’s market price.
Some are even saying they could be shorting the price at the same time to profit off the price manipulation while dumping thousands of BTC for weeks.
Watch Bitboy in the live stream video below rage at F2Pool, and explain what’s going on with this mining firm that was first uncovered by Youtuber CryptosRUs. If you are pissed off use the hashtags #ShareTheHash and #BoycottF2Pool and let them know how you feel about them dumping on you.
At this time of the report, F2Pool is still selling hundreds of Bitcoin a day according to CryptoQuant. Stay tuned to Bitboy Crypto we will keep you updated on this story and more.
Bitcoin is currently trading at [FIAT: $33,545.32] UP +1.6% in the last 24 hours according to Coingecko at the time of this report.