Don’t be fooled: Crypto is going up because of market manipulation

We’re not just a few weeks into 2023 and crypto prices are rising. Seeing the number go up might tempt you to throw some money into Bitcoin or Ethereum. Maybe this is the start of another crypto bull market after all? You don’t want to miss this!

Well, just wait a minute. First, consider this: why are crypto prices suddenly rising?

There are many analysts out there trying to make sense of the recent surge in the value of cryptocurrencies – inflation is Slowdownbelief that the Federal Reserve is done raising rates, bullish news on crypto – but no, it’s not really.

There is no big positive news in the industry. There are no reports of some new mainstream adoption avenues. Sure, the stock market is up a bit just in the new year, but not at the same level as cryptocurrency.

So what’s going on here? market manipulation.

Bitcoin is on the up, but not headed to the moon anytime soon

Bitcoin has been hovering above $21,000 since mid-January, a price not seen since early November 2022. That was before the collapse of FTX, one of the largest crypto exchanges in the world. Crypto was hit hard in 2022 as major stablecoins, lenders, and other crypto ventures failed, causing domino effects across the industry.

However, it doesn’t look up. While one of the most turbulent years for crypto is behind us, 2023 hasn’t treated crypto much better so far mistake by Gemini Earn and the offices of crypto lender Nexo mugged about allegations of illegal activities. There is no good news on the horizon. In addition, the majority of inventors in retail now also see cryptocurrencies as such riskyso who is buying?

As longtime cryptocurrency author and critic David Gerard explains, the big players in the industry are “buying” to control the market.

“Bitcoin price is what the big players need it to be” writes Gerard. “The market is very thin and trivially manipulable with the billions of pseudo-dollars in unsecured stablecoins on the unregulated offshore exchanges. The price has to be high enough that the big boys’ loans don’t get liquidated, but it has to be low enough that the bag holders don’t try to cash out.”

John Reed Stark, a former SEC official, agreed with Gerard’s assessment.

“An actual forbes An analysis of 157 crypto exchanges found that 51 percent of daily reported Bitcoin trading volume was likely fake.” tweeted Strongly referring to a forbes report from last summer.

Who does the shopping? It is unclear

A recent study by the National Bureau of Economic Research found that “wash trades accounted for up to 70 percent of all transactions on non-compliant crypto exchanges, suggesting that most trades on these platforms are fraudulent.”

Wash trading is basically when an investor trades themselves to make it appear as if there is activity in the market to add value. Basically it is market manipulation.

So when you hear investment advice from the likes of Anthony Scaramucci, the man who worked as communications director for the Trump White House for about 10 days in 2017, be careful. Scaramucci now runs an investment firm called SkyBridge Capital and said recently CNBC that 2023 will be a “recovery year” for bitcoin, with prices rising to new highs in two or three years.

It’s important to note that 30 percent was owned by SkyBridge Capital sold out of FTX about two months before the stock market collapsed. The company made significant crypto investments with the tens of millions from this deal just before crypto plummeted even further. Scaramucci recently said that he hopes SkyBridge can buy back the stake sold to FTX. So it’s not too shocking for Scaramucci to spread “good vibes” for crypto so the company can generate a return on its investments.

It’s just another way the big crypto companies and mutual funds are manipulating the market.

https://mashable.com/article/crypto-prices-up-market-manipulation-bitcoin Don’t be fooled: Crypto is going up because of market manipulation

Zack Zwiezen

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