US to Launch BTC Price Manipulation Investigation

US Department of Justice together with CFTC will try to determine whether traders are manipulating the rate of bitcoin and other digital currencies
24 May 2018   1305

The US Department of Justice initiated a criminal investigation to determine whether traders are manipulating the rate of bitcoin and other digital currencies. This is reported by Bloomberg.

The investigation is aimed at identifying illegal practices that can be used to manipulate courses, including spoofing or filling the market with fake orders to mislead other traders and induce them to buy or sell crypto currency, an anonymous source said. They are also interested in fictitious transactions aimed at creating a false impression of active trade. Representatives of the Ministry of Justice work together with the Commodity Futures Trading Commission.

There’s very little monitoring of manipulative trading, spoofing and wash trading. It would be easy to spoof this market.
 

John Griffin

Finance professor, University of Texas

Authorities are concerned about the possibility of fraud in the cryptocurrency market for several reasons: they are not sure that exchanges are actively fighting those who can use dishonest practices, while opportunities for their application are present, and proper regulation is not.

The investigation is at an early stage, the source said. Representatives of the Ministry of Justice and the CFTC declined to comment on the situation.

BTC Invesment Profitability to Exceed Traditional Assets

This conclusion was made by Binance Research team in study "What Bear Market?"; since begining of the year the BTC has grown by more than 50%, while oil by 33%
08 May 2019   320

Since the beginning of the year, Bitcoin has grown faster than traditional market assets, including oil, technology companies, real estate and gold. This conclusion was made by Binance Research in the new study "What Bear Market?"

Since the beginning of the year, the price of Bitcoin has grown by more than 50%, while oil - by 33%, tech stocks - by 18%. The price of gold in five months slipped by 1%.

Recently, however, some factors have emerged that may put pressure on the price of Bitcoin. Thus, the recovery of BTC growth slowed down somewhat amid news of a hacker attack on the popular Binance exchange itself, as a result of which 7,000 BTC ($ 40.5 million) were stolen.

Another potentially negative factor for the price of Bitcoin could be the upcoming IEO of the Bitfinex exchange, where Tether stablecoins will be used to purchase LEO tokens for $ 1 billion. It can lead to situation when large players can may actively sell BTC.