Bitcoin is a notoriously volatile market. Massive price swings occur on a regular basis and cause a fair bit of negative market pressure. One of the main questions is whether or not there is effectively any degree of Bitcoin price manipulation taking place. The proof is in the pudding, but it remains difficult to say for sure.
The Wild Bitcoin Price SwingsOver the past nine years, there have been many debates regarding the Bitcoin price. It is an extremely unstable market, which tends to see ups and downs when people least expect it. To some users, this is a clear sign of market manipulation. Others see it as “another day at the office”. In a lot of cases, the BTC price is fluctuating for no apparent reason at all.
Financial markets, in general, seem to be prone to manipulation. It has happened before, and it will continue to happen for some time to come. People with a lot of money to spend will look for any way to improve their portfolio. This is no different in the world of cryptocurrency, which is perhaps even easier to manipulate, to a certain degree.
More specifically, all cryptocurrencies have a rather low market cap. Albeit $150 billion sounds pretty steep for Bitcoin, it is a small market compared to traditional assets. Anyone looking to influence cryptocurrency prices will effectively manipulate the markets whenever they see fit. Proving this is done on a large scale, however, will always remain rather challenging.
The Manipulation Will not StopThe US Justice Department is looking into Bitcoin price manipulation right now. Whether or not they will find anything out of the ordinary, remains to be seen. Even so, indicting anyone for this manipulative behavior will pose another big problem. Large holders of Bitcoin can effectively influence the market with a few clicks of a button, but that isn’t necessarily nefarious intent.
Very few people benefit from a lower Bitcoin price. Miners need a specific BTC value to break even, let alone make a profit. Large holders of Bitcoin are not inclined to see their portfolio value drop either. Exchanges have no real benefit from a lower Bitcoin price either. As such, there is plenty of circumstantial evidence regarding cryptocurrency price manipulation. Not enough to effectively change this situation overnight, unfortunately.
For the time being, it remains to be seen what the future holds for the Bitcoin price. Rest assured the manipulation will not stop, for better or worse. Those driving the price down will continue to do so until they are satisfied. The ultimate objective of doing so remains a bit unclear at this stage. An uneasy Bitcoin price situation will remain in place for quite some time to come.
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