Cryptocurrency
3 Reasons Why One Trader Didn’t ‘Manipulate’ Bitcoin Price to $20K
As reported by Cointelegraph, “Bitcoin (BTC) price highs in 2017 were not the result of a single trader on an exchange, the CEO of payment company Circle claims. In a series of tweets on Nov. 4, Jeremy Allaire disputed recent research which claimed Bitcoin’s bull run to $20,000 was the result of efforts by a single wallet holder. “The findings are […]
As reported by Cointelegraph, “Bitcoin (BTC) price highs in 2017 were not the result of a single trader on an exchange, the CEO of payment company Circle claims. In a series of tweets on Nov. 4, Jeremy Allaire disputed recent research which claimed Bitcoin’s bull run to $20,000 was the result of efforts by a single wallet holder.
“The findings are currently featuring as part of the $1.4 trillion lawsuit against stablecoin Tether (USDT). Its issuance, researchers argue, coincided with Bitcoin price jumps.
“For Allaire, however, the idea that one Tether trader engaged in manipulation on an exchange had no logic.
“’Exchanges use omni-bus wallets that pool all customer balances and transactions on and off the exchange. So an analysis that shows that ‘a single wallet’ was involved in flows from Bitfinex to other exchanges is meaningless. All it shows is that traders were trading,’ he summarized.
“Others, meanwhile, including Cointelegraph contributors, followed Allaire in disagreeing with the conclusion that entire markets were swayed by a single wallet.
“’Wake up call; every market is ‘manipulated’. Everybody tweeting something about the price of a certain asset is ‘manipulating’ the market. Doesn’t mean you can’t make money,’ trader Michaël van de Poppe summarized in a Twitter post on Monday.
“Bruce Fenton, former executive director of the Bitcoin Foundation, criticized the technical proficiency of the data.
“’The entire premise seems to misunderstand how markets and stablecoins work,’ he responded, calling the research ‘bad science.’
“The dispute comes as curious movements in Bitcoin price continue. As Cointelegraph reported, several recent jumps have sparked speculation, including one which induced the second-biggest daily gains in Bitcoin’s history…”