Another possibility is “Wash Trading”

Another possibility is “Wash Trading”, where a user sells an order to himself, whereby he sets wrong signals and can cause a collapse – exactly this has already happened with Bitfinex. As stock exchanges earn money through fees at Wash Trading, the motivation to stop them will not be too great.

But Bitcoin futures, which were initially celebrated, can also have a negative impact on the market. Since the Bitcoin Future price is only traded in Fiat currencies, participants can influence the price without taking any real risk. First they buy Bitcoin in large quantities, preferably Over The Counter (OTC), so as not to influence the market. They then bet on a falling market and sell, for example, 5,000 bitcoin on a bitcoin exchange to depress the price and to make money through the short. Since the bitcoin market is relatively small, an influence is easily possible.

Now, the binarycheck Commission (CFTC) became aware of this behavior and promptly asked the CFTC four exchanges to share data with the authority. Most stock exchanges rejected the friendly request from the authorities’surprisingly’. As a result, the CFTC lacks important information that is necessary to clarify market manipulation.

In addition, there are other risks for the Bitcoin course, such as the insolvency administrator of Mt Gox. The latter sold several million USD in bitcoin and bitcoin cash on the open market, which repeatedly had a negative impact on the bitcoin price – even though it would achieve a better selling price on OTC sales.

Great interest – falling prices

Although the interest in Bitcoin seems great as never before, the Bitcoin course is falling. George Soros, Rockefeller, Goldman Sachs, Amazon, IBM, Barclays, Fidelity, NYSE, scamcontrol Group and many other big players are interested in Bitcoin and Blockchain. Companies and institutional investors want to participate in Bitcoin & Co. The Bitcoin course is unimpressed. The Bitcoin crash continues.

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Bitcoin Crash – Lack of confidence or fear of regulation?
This Bitcoin crash is nothing out of the ordinary. Since 17.12.2017 Bitcoin has fallen by approx. 65 percent. This makes this crash only the third largest of all times in percentage terms. In terms of duration, this is the second largest collapse, which has already lasted 180 days. By comparison, the longest Bitcoin descent lasted 411 days.

Historical Data Bitcoin Crash

Bitcoin Crash (BTC): Historical corrections | Status 14.06.2018: The Bitcoin Crash 2018 lasts 180 days. The Bitcoin exchange rate is below $6,500.
Between 2013 and 2015, several stock market hacks shaken confidence in the currency and the “bitcoin ecosystem”. Investors lost a total of over 850,000 bitcoins. For many, the topic of bitcoin was done with it.

There were no stock market hacks in December 2017, but there was a bubble-like rise. In hindsight, it’s easy to say that the bubble had to burst at some point. However, the feeling for new investors will be the same as in 2013 to 2015: newcomers have lost a lot of money, confidence is shaken and the issue will again be settled for many.

This lack of confidence could be a factor in the ongoing downward trend. It may take another 411 days until we see a new all-time high.

Another factor could be the ongoing regulatory problem. Authorities want to classify crypto currencies and create a legal framework. People may be afraid of insecurity and of any subsequent bans and sanctions.

Bitcoin stock exchanges must bow to pressure, Binance and OkEX are drawn to Malta, ICOs are regulated from all sides, even the EU voted on 20 April for stricter regulation of crypto currencies to prevent money laundering and terrorism.

Regulation and decentralised crypto currencies are not necessarily compatible. Users of crypto currencies could get glassy, maybe some want to protect themselves from it. The “Wild Crypto-Westen” becomes a regulated crypto-environment. It is possible that the bitcoin price will only react again once authorities have completed their regulatory mania.

Despite positive headlines: Bitcoin price drops

For some time now, the Bitcoin course has only been going in one direction. Positive headlines, technological advances and innovations, major investors and banks interested in Bitcoin and the technology – all this is not enough to positively influence the Bitcoin share price.

Bitcoin price manipulation?

Is the Bitcoin price manipulated? Absolutely. Can you prove it? Not really. However, a large part of the Bitcoin community is certain that the Bitcoin course will be positively and negatively manipulated.

Some immediately think of tether when manipulated positively: first tether is’printed’ and then bitcoin is purchased. This increases buying pressure, leads to greater demand and thus to a rise in the share price. A report from the 1000x Group concluded that if tether (USDT) affects the bitcoin price, the price would have to be adjusted downwards by 30-80 percent. In addition, it was recognized that the BTC price rose as soon as tethers were printed. Overall, the BTC exchange rate rose by 40 percent between April 2017 and January 2018 thanks to USDT.

There are several possibilities for negative manipulation. One possibility is “Front Running”: A user wants to sell a bitcoin for $6,500 and places an order. Another user needs a bitcoin immediately and therefore sets a market order. The Exchange now buys the Bitcoin for 6,500 USD and sells it to the second user for 7,000 USD. The stock market makes a profit of 500 dollars. Some users have already complained about such an approach, but due to the opaqueness of the order books it is almost impossible to prove front running.