We are only a few weeks into 2023 and cryptocurrency prices are skyrocketing. As you watch the numbers grow, you may be tempted to put some money into Bitcoin or Ethereum. After all, isn’t this the beginning of another cryptocurrency bull market? Don’t miss it!
wait a minute. Let’s consider this first: Why are cryptocurrency prices skyrocketing?
There are many analysts trying to make sense of the recent rise in cryptocurrency values - inflation decelerationbelieve that the Federal Reserve ended with a rate hike hike, bullish news on crypto, but it’s not.
There was no big positive news in the industry. There are no reports of some new mainstream recruitment avenues. Sure, the stock market is up a little bit right now in the new year, but it’s not at the same level as cryptocurrencies.
So what is going on here? market manipulation.
Bitcoin is Soaring, But It’s Not Heading to the Moon Anytime Soon
Bitcoin is above $21,000 as of mid-January, a price not seen since early November 2022. This was before the collapse of FTX, one of the world’s largest cryptocurrency exchanges. Crypto has been pounding in 2022 as major stablecoins, lenders, and other crypto companies have gone bankrupt, creating a domino effect across the industry.
However, the situation is not positive. Despite one of the most tumultuous years for crypto he has behind us, 2023 has so far Failure Office of Gemini Earn and Crypto Lender Nexo attacked About allegations of illegal activity. No good news on the horizon. Additionally, the majority of retail inventors now see cryptocurrencies as well. riskyso who is buying?
As longtime cryptocurrency writer and critic David Gerard explains:
“Bitcoin price is what the big players need.” write Gerald. “The market is very thin and can easily be manipulated with billions of pseudo-dollars in unbacked stablecoins on unregulated offshore exchanges. Prices should be high enough to prevent big-name loans from liquidating.” Yes, but it has to be low enough that bag holders won’t try to cash it.”
Former SEC employee John Reid Stark agreed with Gerald’s assessment.
“Recent forbes An analysis of 157 cryptocurrency exchanges found that 51% of reported daily Bitcoin trading volume was likely fake. ” murmured Stark is forbes report From last summer.
Who will do the purchasing?it is not clear
A recent study by the National Bureau of Economic Research found that “wash trades account for up to 70% of all trades on non-compliant cryptocurrency exchanges, suggesting most trades on these platforms are fraudulent.” I understand that
Wash trading is essentially trading with investors themselves to make it appear that there is activity in the market to increase their value. Basically, it’s market manipulation.
So if you hear investment advice from someone like Anthony Scaramucci, who spent about 10 days as communications director in the Trump administration’s White House in 2017, proceed with caution. Scaramucci now heads an investment firm called SkyBridge Capital and recently said: CNBC 2023 will be a “recovery year” for Bitcoin, with prices skyrocketing to their highest levels in a few years.
30% of SkyBridge Capital bought by FTX about two months before the exchange collapsed. The company made a significant crypto investment with the tens of millions of dollars it earned from that trade just before the cryptocurrency crashed further.recent scaramuchi Said We hope SkyBridge will buy back the stake it sold to FTX.
This is another way big cryptocurrency companies and investment funds manipulate the market.
