Last week, bitcoin (BTC) had an overall positive performance. It has again crossed the $21,000 mark, after a notable rise since the start of the week. While the last few weeks have been difficult for the flagship cryptocurrency, this sudden increase in its price has given many players in the cryptocurrency industry a wake-up call. Speculation is rife about this. However, a former SEC official believes he knows one of the main reasons for this resurgence.
A manipulation of the price of bitcoin (BTC)?
John Reed Stark is a former head of the Securities and Exchanges Commission, one of the regulators responsible for the cryptocurrency industry in the United States. He is also one of the biggest critics of the cryptocurrency industry in the country. Faced with questions that fall within the framework of the latest bitcoin (BTC) rally, he seemed to have an explanation. Recall that the flagship cryptocurrency has now crossed the $21,000 mark.
According to John Reed Stark, the management market has played a major role in the recovery of bitcoin (BTC). This manipulation would affect volumes and drive a large number of market participants to buy bitcoin (BTC). Hence this shot. It is based on a Forbes analysis of 157 cryptocurrency exchanges. He then indicated that more than half of the reported daily bitcoin (BTC) trading volume was likely fake.
“The price of bitcoin is rising for a reason. Market manipulation (…) 51% of reported daily bitcoin trading volume is probably fake”wrote John Reed Stark on Twitter.
The former SEC official’s point of view has not failed to irritate the crypto community. Many Internet users answered that he “totally delusional” and that his allegations have no real basis. John Reed Stark received little support in this case.
On the other hand, Galaxy Digital CEO Mike Novogratz suggested two ideas as to why bitcoin is going up. He cites the introduction of liquidity into the markets by the Bank of Japan and China’s backsliding in enforcing its strict regulations on blockchain and cryptocurrencies.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to convey information related to this ecosystem with my pen.