US Government Launches Criminal Investigation into Bitcoin Price Manipulation
Can US government really police the world especially if most bitcoin trades come from Asia? On the other hand, will it not be a good thing for federal investigators to arrest all the Fuders / greedy traders that purposely send out fake news and lies in order to manipulate price for their greedy groups.
According to an article in bloomberg.com
The Justice Department has opened a criminal probe into whether traders are manipulating the price of Bitcoin and other digital currencies, dramatically ratcheting up U.S. scrutiny of red-hot markets that critics say are rife with misconduct, according to four people familiar with the matter.
The investigation is focused on illegal practices that can influence prices -- such as spoofing, or flooding the market with fake orders to trick other traders into buying or selling, said the people, who asked not to be identified because the review is private. Federal prosecutors are working with the Commodity Futures Trading Commission, a financial regulator that oversees derivatives tied to Bitcoin, the people said.
Authorities worry that virtual currencies are susceptible to fraud for multiple reasons: skepticism that all exchanges are actively pursuing cheaters, wild price swings that could make it easy to push valuations around and a lack of regulations like the ones that govern stocks and other assets.
This above news caused most cryptocurrencies prices to enter red territory : according to coinmarket cap . Moreover daily price manipulations do affect day traders and not those who buy and hold in the long term
**Opportunity to buy **: day traders should see this as a blessing in disguise ie opportunity to buy cheap and sell high in the coming days and those who think long term should see it as an opportunity to buy some cheap coins/ tokens and HODL.
Regulations:Markets fall whenever there is news of regulation , however some regulations are indeed good because extremely greedy traders and exchange owners do manipulate price with fake news and trading bots leading to FUD or FOMO. Therefore we all should not focus on daily news rather think long term because cryptocurrencies are here to stay.
Do you agree? Send in your comments, resteem and upvote in order to send in your support.
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Ethics is the most important gift
Great post from you, well done
Thanks for sharing..
It is true that greed is pat of human nature thus many traders and rich investors are manipulating crypto prices for their personal gain...I am for justice...moreover, I agree that it is time to buy and HODL
Well analysed Ronja...thanks
I agree, this is indeed a great opportunity to buy some coins for cheap. Some people will always try to create FUD.
Good point.
I completely agree with not running in the face adversity. This type of thing always has a negative impact in the short term. I just wrote a post on his subject a couple of days ago:
https://steemit.com/bitcoin/@japhofin8or/bitcoin-investigation-should-you-be-worried
though it is not nearly as in depth as your post. I 'm not that knowledgeable as far as trading goes but I have faith that the market will recover itself soon. I see blockchain technology and cryptocurrency as the next step forward for mankind. I'm glad I saw this post and am resteeming it. It reinforces the 'stand your ground' ideology.
Welcome and thanks for your comment. Cryptos are indeed here to stay and we can see regulations in both perspectives however the bottom line is that we are growing stronger everyday!
So this means stable price? Stable price of crypto means no ups and downs of emotions. Crypto should remain a roller coster going up and down so that we can enjoy the ride ;)
Hahahaha I agree with you...with the volatility comes the supernormal profits...am sure that Crypto´s will remain volatile and note that the regulators cant control the global markets
Your this comment has made me happy than your whole article ... love you
welcome...
and make money off of it...
If there is a system, it can be manipulate and exploit. Nothing can be regulated for long. Governments are trying to control cryptocurrencis because they are becoming aware of the danger which can snatch absolute power from them. This power is money on which governments had monopoly and full control. But cryptos are decentralized which is against the will of these governments. That is why they are trying to exploit any loophole which may provide opportunity for them to control this market and attack any effort that may challenge their authority.
Well analysed..I agree. Thanks for your comment
You analysed it well, thanks for your comment
You're welcome!
I think launching into investigation doesn't necessarily mean there is foul play right? Just a lets see if its all legit.
I could be wrong but open to debate :D What do you guys think?
Good point however governments do not launch an investigation if they think that there is nothing for them...sometimes they just wanna show that they are the boss and watching out for the bad guys or wanna take over control!!!
I have lost half my money due to the decline in crypto value. But I am collecting money in these few days to buy more.
I'm sure, crypto will be stable again in the coming weeks.
Good point, I agree...
Thank you
I have been listening to such rumors for a while. You can do this with Bitcoin, but after seeing this news, I am clear enough to thank you for sharing with us.
Welcome
I agree, this is indeed a great opportunity to buy some coins for cheap. Some people will always try to create FUD.
Good point, always good to be smart