Is there any doubt Bitcoin prices are manipulated? Well I've thought it for some time as have many others. In recent news reported in FT and Bloomberg, the Justice Department has decided to open a criminal probe into whether traders are manipulating the price of Bitcoin and other digital currencies.
There are a few reasons why prices of Bitcoin and other cryptocurrencies are most likely being manipulated. Here are three that come to mind right off the bat:
1.) There are several very large holders of Bitcoin (and other cryptocurrencies). These people have a lot of incentive to co-ordinate buys and sells on the market.
2.) Many Miners have extremely large positions, are also motivated to see prices rise as it should mean more money for them.
3.) Lots of traders have taken the time and effort to establish accounts on various platforms to 'arbitrage' price differences. They should be (and likely have been) rewarded for their efforts.
But the question remains is the manipulation a game over for cryptocurrencies? I would say certainly not. Prices are going to rebound and move upwards. I think this because of all the news I've recently read about large banks getting involved in cryptocurrency exchanges... Do we know when they will go up? I don't but if you have any ideas I'd be happy to hear them. They will most likely go up when these large players are ready to capitalize on the price action.
Until then we could see downtrend or sideways price action. But I would say that its almost a certainty that cryptocurrencies and blockchain are here to stay.
Source:
I Would Be Shocked If Bitcoin Prices Weren't Manipulated - Forbes
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Forbes
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This is no doubt the price manipulation from the big holders. It may also indicate the bullish trend sometime ahead in June. Lets finger crossed.
Everything is manipulated.
Good point.
i have seen market cap increased by $100 bil in a few hours a couple of times now. so those funds which add or remove an amount that big are probably behind the price movement. i wont call it manipulation as it happens in every market.
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All three types of groups of possible manipulators are excising in the space, I am quite sure of that. But let's say there are such powerful forces. So they collect vast amounts of Bitoincs (other altcoins) and USD fiat. So on the other hand some of those groups would be in conflicting interests.... shorting BTC or interested the price to grow (miners for exampe). So as the market is unregulated, there is always a fight: Bulls vs Bears. In my opinion this is a natural cycle we are living in, without too much conspiracy about the precise price targets, when it comes to FUD on media, or negative moods from govs etc. Yes such powerful structures as governments, regulators they are influencing the space, but I am not convinced that this is done with precise planing.....
I have never seen any evidence of such evil activity yet.
Crypto's positive price actions depends on volume, which now depends on a serious catalyst. I think a clear legal go ahead is awaited by banks and institutes to put their hands in crypto. In absence of a serious catalyst, I don't see prices moving significantly.
USDT printing is a big factor in price manipulation. Last big bitcoin candle came after 250 million new USDT were released. USDT will cause massive crash of crypto, if not discarded or proven to be legitimate.
4th reason why prices may be manipulated is that its a free world with no regulation, no checks, no accountability. If the game is open to being rigged, there will be people ready to profit from that opportunity.
I am also bullish because banks are getting involved and that may be the likely cause of this. Shake the weak hands and accumulate as much as possible. I do think negative or sideways action will continue till regulation establishes btc as a commmodity. Or some regulatory approval is in place for institutions to jump in.
Every financional institution is manipulated to some digree. In old markets there are several strong parties that block manipulation from each other. No one can win so they set the rules to be followed by everyone on the market. Crypto industry is too young. Balance of power hasn't settled itslef yet. Things will change as market gets older.
Interesting point. I think you are probably right... Might have shown up a bit early to the party here...