atans1

“Is Someone Manipulating the Price of Bitcoin?”

In Financial competency on 03/02/2018 at 7:21 am
(Added at 11-05am: Btw it’s down 40% since 1 January. Sorry for the omission.)

Given that the price of Bitcoin price has just fallen below USA$8,000 for first time since November 24, “Is Someone Manipulating the Price of Bitcoin?” (the title of the u/m piece from NYT’s Dealbook) is laughable because price manipulation must have been the other way or failed:

New questions about Bitcoin’s price

Regulators are increasingly worried that Bitfinex, a widely used (and famously opaque) exchange, has been propping it up. The Commodity Futures Trading Commission has subpoenaed the company, whose Tether digital token is often used to buy other virtual currencies.

More from Nathaniel Popper of the NYT:

Hundreds of millions of dollars worth of new Tether were created; almost always when the prices of other virtual currencies were heading down. The Tether were used on the Bitfinex exchange to make big purchases of Bitcoin and other tokens, helping push their prices back up, according to multiple analyses of data from Bitfinex.

“This became more and more concerning, because every time the markets went down, you have seen the same thing happen,” said Joey Krug, the co-chief investment officer at Pantera Capital, which runs several virtual currency hedge funds. “It could mean that a lot of the rally over December and January might not have been real.”

Where we stand: According to CoinMarketCap, Bitcoin is trading at $9,545, down almost 7 percent over the last 24 hours, Ethereum’s Ether at $1,099, and Ripple’s XRP at $1.05, down 7 percent.

The digital money flyaround

• How Goldman Sachs was rushed into supporting Bitcoin. (Bloomberg)

• Meet Bibor, a proposed interest rate for lending Bitcoin. (Bloomberg)

• Samsung is making specialist chips for mining virtual currency. (CNBC)

____________________________

Today’s DealBook Briefing was written by Andrew Ross Sorkin in New York, and Michael J. de la Merced and Amie Tsang in London.

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  1. Is someone consistently making big profit from the big rise and fall? If so, he might be the manipulator. Otherwise why take all that trouble to manipulate.?

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