Bitcoin’s Positive Run Ends As Price Manipulation Queries Arise
However, concerns have been raised over the possibility of bots being deployed to manipulate crypto prices.
Bitcoin Records Drop
Bitcoin’s upward surge has met resistance after the largest cryptocurrency dropped below the $6, 500 level to trade at $6,430. However, bitcoin was not the only affected currency since a majority of other digital currencies recorded drops. The drop in bitcoin’s value comes after a report in the WSJ claimed prices were being tampered with by cryptocurrency trading bots.
At some point on Thursday, bitcoin even went lower than the $6,430 mark. A look at the past 24 hours, bitcoin has been dangling in the range of $6,424 and $6,555. By press time, the world biggest cryptocurrency was trading at $6,495 while the market stood at $112.8 billion. However, compared to Wednesday, the daily trading volume increased on Thursday to stand at $4.58 billion from $3.9 billion.
Despite the market being marked by red, NEM crypto was the biggest loser. The crypto’s value declined by 7%. However, some coins register significant gains with NOAH rising by 38%. Additionally, SC and DC also registered some positive gains.
The issue of price manipulation through the use of bots has been around for some time now. The SEC had earlier pointed out manipulation as the main reason it is yet to give a green light for Bitcoin ETF. The issue is being looked into by a task force.
Concerns Over Alleged Price Manipulation Using Bots
The latest report by WSJ adds raises more questions on whether the price changes are being controlled by an underground party. Recently, New York Attorney General had released a study stating that changes in digital assets are open to manipulation spearheaded by bots. The same has been echoed by CoinList boss Andy Bromberg who claimed that the issue of manipulation by bots is widespread all over.
According to Stefan Qin, a senior official from Virgil Capital, crypto hedge funds might be responsible for the manipulation. He claimed that these funds have launched their bots to hit back at numerous rival bots. He adds that these funds have developed functions that select illegal activities. Qin revealed that Virgil once became a victim of a harassing bot that was directed to ether traders.