Regulation Of Cryptocurrency Markets By Authorities

Over the past few weeks, we have seen the most dramatic cryptocurrency price swings we have seen in years. The price of Bitcoin went from $20,000 to $6,000 in just a few days — without warning.

The reason for this is that cryptocurrency exchanges are unregulated and lack the same protections against market manipulation as traditional financial markets.

This means anyone can create an account on an exchange and instantly buy hundreds of millions of dollars worth of bitcoins without question. And because these exchanges operate outside of government control, there is no way to know if the activity is legal.

Over the past year or so, there has been some large-scale market manipulation in the cryptocurrency market that has resulted in huge losses for investors. One example is the flash crash in May 2018 when the Bitcoin price dropped 20% in minutes before recovering almost all of its value in a matter of hours. This has led some analysts to believe that there is massive price manipulation behind it – but there is no evidence to support this theory yet.

In fact, there is reason to believe that what happened during this period was in fact just another example.