Artificial intelligence or AI based systems are designed to do advanced algorithms faster and efficiently without or with little human intervention.
Recently the price of Bitcoin dropped significantly. This price drop is being attributed to Goldman Sachs decision to stop the development of its cryptocurrency desk.
What this means is that it would not be offering cryptocurrency based services to its investors anytime soon.
This kind of news would be seen as bringing negative sentiment to the cryptocurrency community and price trends.
It is noteworthy that bitcoin prices have been steady around the dollar 7100 mark before the NEWS came in. Despite the prices being stable someone took a 10000 Bitcoin short position.
This short position amounts to $74,000,000.
the unfolding of events before the price drop
Even before the news of goldman Sachs sidelining its cryptocurrency project came out, the price had already dropped significantly.
This suggests that there maybe someone saw the news coming and made the most of the opportunity when the news broke out.
In such cases it is not unusual to speculate that an insider who knew about this opportunity played the Bitcoin shorting game to his advantage.
An indicator in this regard is the fact that even hours after the price drop traders and price watches Bitcoin question searching the internet and Twitter handles for getting a clue of any negative news that could trigger such a fall.
AI artificial intelligence saw this coming
The data scientist and analyst from the RoninAI and a team which happens to be an AI based signal platform found the following data from the chart which corresponded to the Drop
A number of AI based indicators pointed towards some unusual activity which can be seen in the charts.
As per the three day chart provided by RoninAI when volatility in social sentiment appears the AI algorithm reacts to it. image1.jpg
The chart shows a sudden influx of activity which is not authentic.
Zooming in a couple of hours prior to the event we see that social sentiment had spiked over three standard deviations over its mean value.
Comparing these patterns with historical data one finds that such spikes are not naturally occurring events.
In the event of the morning Bitcoin price drop on 5th Sep 18, 3 standard deviations were witnessed.
These events occurred just about 10 to 15 minutes prior to the crypto price decline. This data fuels the conspiracy theory that an insider may have been involved in the price manipulation.