- Michael Novogratz on wednesday asked his crypto community on twitter, the real reason behind the recent Altcoin rally.
- In his recent Tweet, Mike asked if Poloniex was a driver of the altcoin price surges.
- Altcoin prices had seen a recent surge in price with Bitcoin SV paving the way with a massive growth of nearly 80% in market value.
Bitcoin connoisseur, Michael Novogratz went on Twitter on 15 January to tell his followers that he had difficulty understanding the altcoin rally in the market. Altcoin prices had seen a recent surge in price with Bitcoin SV paving the way with a massive growth of nearly 80% in market value.
I’m not sure I understand the altcoin rally. Happy for those making money on it. But not sure what changed. Maybe new year, new money, new enthusiasm. Dinner in NYC for best explanation.— Michael Novogratz (@novogratz) January 15, 2020
It has left many enthusiasts, and experts in the sector perplexed at the recent surge and its breadth. Novogratz expressed his suspicion and confusion over the market rally. He also wished the best to those who were making money off of it.
But what really took his audience by surprise was when the Galaxy Digital CEO made a follow-up tweet where he thanked the people who had tried to explain the altcoin market rally to him and then went on to ask if Poloniex was a driver of the altcoin price surges.
He also included TRON cryptocurrency founder, Justin Sun into the conversation who has despite several denials, confirmed that he is an investor in the exchange.
Although no one knows for sure as to why the altcoin prices surged, many have come to a consensus that the efflux of Bitcoin probably had something to do with the rally.
Is Poloniex behind Altcoin rally?
Poloniex had recently seen a massive influx of bitcoin into its exchange when a Bitcoin whale transferred 5000 BTC ($39 million) to a wallet on the exchange’s platform.
Our bot picked up a massive $39M $BTC inflow into Poloniex from an unknown address. @Poloniex— TokenAnalyst (@thetokenanalyst) January 10, 2020
For context, inflows of this size are rare, and the avg. daily $BTC inflow into Polo is $2M – $3M.
We are monitoring to see if this is Polo shuffling funds. pic.twitter.com/wzXKukYItI
This was a massive inflow of cash for the exchange since their regular average daily inflow of cash is 2 to 3 orders of magnitude lesser at about $2M – $3M.
It has already been analyzed and established by crypto analysts that Bitcoin whales have been an essential factor in initiating bearish or bullish reversal to Bitcoin prices.
This Poloniex transfer could be a major reason why the prices have shown a hike. Also, it is quite interesting that Novogratz chose to tweet at the Tron CEO given that Justin Sun is only an investor in Poloniex. Poloniex has also been alleged to show favouritism to TRON in the past tweeting at users to buy TRX.
TRON was also seen to profit from the rally as the value grew 18.2% in the past week, trading at a high of $0.01805 on 15 January. Poloniex now stands at 22nd rank on CoinMarketCap with a liquidity of $6.8 million.