Why Bitcoin Is Soaring: Goldman-Backed Circle Buys Crypto Exchange Poloniex

Earlier this morning we reported that bitcoin and the entire crypto space surging on what at the time, appeared to be lack of substantial news. Not long after, the catalyst for the surge emerged, in the form of a Fortune report that Circle Internet Financial, a cryptocurrency-focused financial-services firm backed by Goldman Sachs, would announce today that it is buying crypto exchange Poloniex, "a move that immediately makes Circle one of the largest and most influential companies in the industry" and also give the crypto space a much needed seal of approval - and validation - from none other than Goldman Sachs, one of the first firms to adopt cryptocurrencies on the institutional side.

While terms of Circle's acquisition of US-based Poloniex, which was formed in Jan 2014, have not been disclosed, Fortune reported that the deal was for about $400 million.

“We are excited to work with Circle to localize our product in more geographies, to explore options for fiat connectivity across major world currencies, and to continue providing our users with access to innovative token projects that extend cryptocurrency protocols to new use cases,” Poloniex said in a statement.

Circle, which allows users to transfer money via text, said in an statement on its website it will "address customer support and scale risk, compliance, and technical operations to bolster the existing product and platform." An excerpt from its statement is below:

We’re proud to announce that Circle has extended its commitment to a new vision for global finance by acquiring Poloniex, a leading token exchange platform.

Built upon a foundation of blockchain technology and crypto assets, Circle is on a mission to make it possible for everyone, everywhere to create and share value. Circle Pay helps people around the globe connect to one another and share value just as they would share any other kind of content on the open borderless internet; Circle Trade serves institutions and investors as one of the world’s largest providers of crypto asset liquidity; and our forthcoming Circle Invest app enables individuals to tap into crypto asset investment through a simple, seamless, mobile experience.

Now Poloniex addresses another key element of Circle’s product foundation: An open global token marketplace.

We want to take a few moments to welcome Poloniex, present the immediate work you can expect from us with Poloniex right now, and share what we see as its future.

In interviews, Circle’s executives were reluctant to divulge information about inner workings of Poloniex, including who runs it, and they declined multiple requests for interviews with the exchange’s principals, saying that Poloniex’s leadership wished to remain out of the spotlight, Bloomberg reported.

The combined company will compete with large digital wallets and exchanges such as Coinbase. As Bloomberg adds, "the agreement comes as startups and corporations alike are trying to figure out whether to wade into cryptocurrencies. While many have been involved in blockchain for years, there has been more hesitancy around what to do with digital assets like Bitcoin due to volatility and a history of it being used in shady transactions like drugs and evading taxes."

As news of the transaction spread, Bitcoin surged over 4%, back above $10,000, and was trading just above $10,200 last after hitting an overnight low under $9,400.

Bitcoin has hovered around the $10,000 mark for most of the year, or about half the record hit in mid-December.

“It has a lot to do with this announcement of Circle buying Poloniex as it’s providing some support for the exchange industry,” said Fundstrat’s Tom Lee, who forecasts Bitcoin will end the year at $25,000. “Breaking a big round number is definitely a positive, but from a fundamental perspective, it’s highlighting that developments in crypto this year have actually been positive.”

Quoted by Bloomberg, David Mondrus, chief executive of Trive, a blockchain-based research platform, said that the cryptocurrency market may also be benefiting from renewed interest in Asia after the recent Chinese New Year holidays: “I’m seeing a turnaround on multiple cryptos with volume as it’s the week after Chinese New Year,” Mondrus said. “We’re back to business.”

The sharp spike in crypto prices is a reminder of the potential upside in the sector as further validation comes from established institutions, ready to support and adopt the new technology which is increasingly becoming the most popular trading asset among the Millennial population.


JibjeResearch Coinista Mon, 02/26/2018 - 13:09 Permalink

Mr. t is not telling you everything..

The crypto market is tiny... you ain't see big yet..

When those elites get a good quantity of cryptos, you life will be miserable if you don't have any fundamental coins.

Get some of these coins:



Hedge accordingly.... those elites are coming ..

Best Wishes :)

In reply to by Coinista

Ramesees Coinista Mon, 02/26/2018 - 15:52 Permalink

Coinista is a nocoiner, which is fine, but stop with the parody. MDB was at least funny. You just come off as jealous TBH.

Be happy - gold is going to do well, Bitcoin is going to do well, stocks are going to do well, real estate is going to do well, silver is going to do well, commodities are going to do well. Everything but bonds. And I suspect you don't own bonds. 


I thought everybody knew about the Circle/Polo deal and that it was priced in already...I guess not! Or maybe the bullwhales just weren't ready to let bearwhales make money.

In reply to by Coinista

DillyDilly Exponere Mendaces Mon, 02/26/2018 - 14:35 Permalink



I made no mention about BCH or IOTA... All I said was that mosley is RIGHT (in this context)...


mosley, I believe, sees the big picture, & the BIGGEST PICTURE OF ALL is market cap...


MC of all cryptos, today, is somewhere around 450B... Was over 700B in early January, and dipped to around 275B during the panic... NOW? GS 'announces' an acquisition (that has probably been in the pipeline for months)?


= LEG UP on market cap


When MC of all cryptos = 2-3T (which is what, I believe mosley is referring to on the TBTF comment)... Viewed with that lens ~ His statement is correct.

In reply to by Exponere Mendaces

Rickety Rekt Nature_Boy_Wooooo Mon, 02/26/2018 - 17:31 Permalink

Tether is a means for people to still think in this paradigm. Instead of going into one of the mains (currently BTC and ETH). Once Tether ends, those people go back into the market (Buy ETH, sell worthless coin that has a set value). If anything it would be one of the most bullish moves. Why? 

People will stop thinking relative to USD. It takes a while and you need to get used to new exchange rates, but thinking in terms of BTC or ETH is forward thinking into the next paradigm when no one gives 2 shites about the USD, which (the idea) then rolls onto the other fiats. If the banks were smart, they would let the exchanges have fast flow of funds instead of bottlenecking, because funds going in are always such a pain the ass to get out. So why bother taking them out. Let the USD write it's own tombstone.

I have no idea why everyone freaks out about tether. Sure, it is insolvent. Regulation coming, and maybe even far enough along that if it goes sideways the regulators will go after the exchanges to pay cover customers. To me it the take-out of tether will be so damn bullish, and likely lead to better exchanges in terms of fiat movement (if they are smart). 

Bottlenecks created by banks like TD etc banning purchases and transfers are committing their own monetary policy, affecting the flow of funds. I think that the market starting to slide is timed nicely with recent bottlenecks consider bail-in conditions.

In reply to by Nature_Boy_Wooooo

Liberaldisdain pods Mon, 02/26/2018 - 12:31 Permalink

"Soaring" in the headline is clickbait, unfortunately it is ZH modus operandi, continuously ridiculous headlines. It often takes away from what otherwise would be decent stories and really exaggerates the garbage ones, and is part of the reason the site will never truly be legitimized. 

But they don't care, we are clicking and they are making money lol. 

In reply to by pods

Buck Johnson pods Mon, 02/26/2018 - 14:13 Permalink

Exactly, they are just trying to talk down everyone elses book in order to get everything on the cheap.  They know the future is in cryptocurrency and with so much money sloshing back and forth daily from this, you would be a fool not to dip your ladel or even buckets into the money river.

In reply to by pods

qr259100 pods Mon, 02/26/2018 - 14:28 Permalink

Once a stock manipulator always a manipulator no matter the area they go into. 

These markets are to small for that not to happen. But the ace in the hole is peer to peer exchanges. That is the technology that must be pushed.  Decentralization. Hashgraph even holds the promise of a decentralized stock exchange. Now that would level the laying field. Years away for sure lots of bumps in the road. But if the people can stay focused and not buy into all the government and corporate FUD we will get there. 

CloudCoin is worth looking at if you are not just "investing" but are actually serious about replacing fiat currency. 

In reply to by pods

Sizzurp Mon, 02/26/2018 - 12:00 Permalink

Something doesn't go from zero to 20k  for no reason folks. BTC is a financial paradigm shift in the making, and it doesn't take a rocket scientist to figure that out. Oh, and it's still on sale for 50% off.  Get it while you can.

octomancer Mon, 02/26/2018 - 12:02 Permalink

Next month:

"Goldman announces that their exchange has been the victim of a sophisticated hack by cybercriminals. They estimate that $800 billion worth of cryptocurrency has been lost in the attack."

GodSpeed_00 Mon, 02/26/2018 - 12:04 Permalink

Does this mean Polo will have USD deposit/pairing and international wire services? That would be nice. As for Banksters buying exchanges, go right ahead, behind the ball as usual..we're heading towards decentralized exchanges now.