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.

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