Researchers have found evidence that two trading bots, named Willie and Markus were responsible for market manipulation on the Mt Gox exchange in 2014. To make matters worse, they claim that these bots traded with Bitcoin they didn't have and sent signals of healthy market growth.
Price Manipulation in the Bitcoin Ecosystem - https://www.sciencedirect.com/science/article/pii/S0304393217301666
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Absolutely, as Tanweer points out there has to be a reason for the cryptos all going up and down in unison, that doesn't happen by accident. The prices are obviously being manipulated and the small investors are the pawns in the game.
Im in crypto but have been banging on about how this could well be a bankers idea ( cryptos ), and with the one world currencey proposition by the EU it has all the hallmarks of being so. One dont need to be Einstein to work out crypto can all so be manipulated either by deception ( mt gox ) or price inflation. You can also be sure that satoshi, a ficticious name created to hide the true identity of.......... yes what better way to cloak your banker look that to sound Asian AF. Very easy to do on the internet....
Absolutely true. I`m trying to get out of bitfinex but before I can do that i`ll need to clear my $-300 deficit in margin trade. So many times have i seen unreal price movements as Michael said about his 14-7 ether it`s not a coincidence anymore. In addition to that, I find myself getting slight lag and unable to execute orders during extreme movements. Sometimes I get logged out and get a screen saying I was banned. Again, more than it should happen and when it does I never benefit from it. Im having such a hard time getting out, I feel like I should just give up to the loss and take what`s left but I don`t have enough to withdraw since the minimum amount is $250.
I think the more dangerous concern should be the Bankers manipulation of the markets... and eventual control of cryptocurrency in general. It seems pretty obvious that the banks have the most to loose if crypto and blockchain goes mainstream. And the ability to print money at will is the domain of the big banks. Are we so naive that we believe that the banks werent buying up BTC bigtime in the run up from $2K to $20K? With a few billion (small change for banks) they have the ability to dump a chunk of BTC and drive down the price. They buy back at the bottom and then sell at a lower high... lowering the highs and driving down the bottom... And the whole time shaking out the worried minnows. Remember.... if you're in it for the tech, you are probably still up... If you believe in Blockchain and decentralization, you got to HODL.... I'm willing to ride it down to 2X if necessary.... 100% profit in a year aint so bad for a chance to take out the banks.
Yes: The stock market and metals are rigged. And, the big guys are now trying to do it with crypto, particularly as it applies to futures and ETFs. Hodl firm and hang in there! Just get the future maturity schedules and keep track of what happens right before they come due!
This is one of the most important topics you have discussed, because the bitcoin price has enormous significance to the public.. I met Mark Karpeles in 2011 in Tokyo, he was obsessed with the bitcoin price rising, so first of all we have motive.. He is a programmer and it would have been very easy for him to create the type of bot you describe, so he had the means. He owned the only worldwide bitcoin exchange, It is safe to assume that manipulation is going on right now on all the exchanges. I am a market trader https://btcmanager.com/author/daniel-bruno/ and this issue is important to me. I also have my own projects https://en.wikipedia.org/wiki/Solidus_Bond and I invite you to do a show with me about these subjects.
I read this book on the stock market which totally opened up my eyes - Michael Lewis' Flash Boys. It is totally infecting cryptos as well. http://www.amazon.com/gp/product/0393244660/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0393244660&linkCode=as2&tag=pypull-20&linkId=5AL5UWQUM37B2QTU
This is why I set alarms and not stops. On a trading platform to this day you can see smoothly increasing volume.This is because exchanges have bots buying and selling a crypto to each other to create fake volume. They are called volumizers. This is sometimes used to keep coins alive, but mainly to show volume to attract traders to their exchange
Thanks for covering this highly relevant topic. Market manipulation isn't anything new and is certainly happening. The techniques used in the stock market are being applied in the crypto space. For example, spoofing, churning, wash trades, etc. You can see these in action right now with many/most coins. Look at the order books and history for an hour or two and you'll start to see suspicious activity. Trade/Invest defensively and use dollar cost averaging to mitigate effects of price manipulation. Good luck all.
there is definitely widespread manipulation in the us stocks/futures/derivatives and the crypto markets. There are a lot of people with a lot of money that can hire PHDs to write complicated algorithms and use highly technical automated strategies and bots. That being said, you only get burned when you day trade. As long as you hodl you cannot be affected
I agree with you that currency manipulation is advantageous to those who understand enough and have a greedy heart. Crypto is based on Trust. Not simply an expansion of the current fiat system. In Crypto we Trust ...MUST PREVAIL !
Lately I been watching trades on the exchanges, I had seen manipulations/ pushing one buy or one sell order multiple times to increase their gains. Do your research then buy and hodl, you will do fine on your investment
Perhaps the YouTube crypto content providers should all get together and "represent" the public and come up with some sort of self imposed regulation and offer it up to the world governments as suggestions. I'd rather try and steer this in our own direction than to the government come up with something.
I can see the day when decentralized exchanges are illegal. the regulators are corrupt as well... they don't care if there is market manipulation, they just want a piece. the whole stock market is based on manipulation.
i think this might be happening with this new iot coin called "INT Internet Node Token". It has a MC of like 100mil but a continious volume of 30-50 mil... seems shady even if the coin is hyped right now.
Gday Boxmining, what are your thoughts on a future where bitcoin goes beyond $100,000 or $1mill. Send fees will be in excess of $100 to $1000. is this sustainable for the middle class, if a regular person buys $1000 when the market is $1 million, they could loose the lot in transfer. Could this been a real resistance point.
When you said you you were a victim of the pump and dump or ETH bottoming out and then you liquidated your assets (withdrew into FIAT) and then it went back up again, you have to remember, you made that choice to sell your ETH. Was it market manipulation, most likely yes, but you fell for it. Take it as a lesson learned and remember the mantra: "You only lose when you sell".
Anywhere there is a global market or even a regional one, there will be manipulation based on the way its designed. It's just the way it is and it will always be that way until design and mechanics of trading is changed.
If you want to see what happens when US Exchange trading bots fail, look up the S&P 500 Flash Crash Video. I had a friend that worked on one of the biggest HFT trading firms at the time. I can tell you with 100% certainty that all of the US Markets at least are "Captured" by Trading Bots and Dark Pools.
The bots main goal is to give and take liquidity in nanoseconds. Just watch the order book of any big instrument. You might see a BTC 400 Buy order and then in a flash its gone with no volume in the time and sales. Then its back 30 seconds later. This continues over and over until a price objective is reached and then the price is just slammed.
The S&P 500 Flash crash was an example of fairly early large institutional trading bots in action without the proper governance to protect the consumers (retail investors). These bots are machines that trade proprietary algorithms with the flick of the switch. No human thought or input involved. Unlike humans, some of these bots are never ever beaten.
I thought you were going to talk more about the big holders manipulating the price to crush it utilizing the futures. There was billions of dollars yanked out a just before expirations times. Now are they buying or going to yank again for jan 26th. hmmmmmm ..
BoxMining wants to say that Bitcoin's price is beeing manipulated by bots right now so that it keeps it Low.
What do we get from all of this? That's probably a good time to buy and were going to see a lot of upside soon on BTC
When they try to keep it low is for whales to be able to buy in huge chunks of a small price (they can't do that without raising the prices up).
It's ironic that the blockchain which made this trustless architecture possible, giving us cryptocurrencies, also spawned this scam-filled ecosystem. We need a better solution to level the playing ground for the individual investor.
I strongly believe regulation is essential for the future of crypto industry. Also, futures trading is another price manipulation.
we dont need regulations just use ur power as a consumer and chose an exchange that offers more or complete transparency. no amount of regulation will stop all criminals in fx margin trading they got rules but no one can enforce them since its so much data ans the best way to not get caught is to stay low so nobody asumes foulplay with your ETH example they were rather careless.
Thinking there's no Market Manipulation in the stock market is like thinking there's no drug use in sports. it's just nieve. There is a lot of money to be made and computers make it faster and more efficiently than any human, it's wrong but when does that ever stop wall street or Governments.
As you seemed to be investigating the whole costing of crypto, in general, please spend some time in actual costing of using crypto. It does not look as cheap as its being claimed. There a few factors to be involved which make them actually very expensive. Trading and even transferring crypto between wallets is also chargeable! what I found extremely disturbing. I, personally trade currancy and deal with international money transfers in EU and originally I fought this crypto market is great. BUT I purchased and ivensted substantial chunk of money in verious coins and what have discovered, costs ARE HUGE, even to compare to avarge money exchange. FIRST i get charge to buy Bitcoin, SECOND I get charge to transfer bitcoin to exchange market (Binance/OKex, Bittrex, etc..), THIRD any transactin (sell or purchase) is commisioned, FOURTH any exchange back to bitcoin is commisioned and charged, FIFTH transfer of Bitcoin to my wallet is charged again and finally SIXTH, any exchange to FIAT and witdraw is charged again. In summary tarding and useing crypto is becoming expesive and may lead to disaster when everyone will find out, its 5 times more expensive then making simple wired banking payment! Something inb this industry in not making sence tobe compatetive ands cheaper then any current institutional providers....
There absolutely is price manipulation. Can we do anything about it? nope. Just ride the waves. Just because there is price manipulation doesn't mean we can't take advantage of it.
"None are more hopelessly enslaved than those who falsely believe they are free."
Guy's the same exist's on traditional markets as well. Black box's are not myths, as any Quant is living proof and most likely part of the formula. Trading at the speed of light, is a speculative and current future to trading. Has been for some years now.
Interesting. There's a Youtuber Called Sentdex, he's a python programmer and does alot of videos with regards to financial programming. He mentioned in a Q&A a few weeks ago that he ran a Bitcoin investment fund back in the run from 100 to 1000. If i'm not mistaken he said he used a program to make the trades. on his page he's got a set of videos where he shows you how he created a program called "Sea of BTC" where you can do BTC market TA and auto trading. It's years old, so I'm not sure if it's still using able if someone created it.
stock markets are ALL manipulation, stock certificates never change hands, trades don't clear for days, ie clearing houses don't even have order information, much less confirm; meanwhile billions of shares have "traded". Do the math.
Does price manipulation exist? YES! Absolutely! The question is "By How Much?".. Now that Bitcoin is being promoted in the futures market, this is probably a good indicator that the group of banksters feel like they are in full control of this currency! That said, other cryptocurrencies like Litecoin are much less manipulated because of their relatively small market cap.. For example like the hunt brothers did with silver in the 80s as other markets were going down, they pumped their money into the small market cap commodity of silver... This preserved their wealth until government regulations forced them to sell... Silver Litecoin and physical silver will shine like gold in the future 😉
yes we have to get strong and united to survive the cryptoworld.. we have to show the governments that this world is something.. to proof this we have a small part of time.. in march is the g9 and will make rules for this world.. so we have to show thats all this is revolution.. and let the best projects survive!! And destroy the bad fishes...
Interesting fact disclosure, thank u Michael. There's always something out there to exploit us poor working bees pulling together our hard earned honey just for some crook to steal, such a fugly world this is...
I think a case can be made for price manipulation but if you look at the BTC/USD charts, a lot of the patterns suggest otherwise. If it were manipulated to the extent of the participants jacking the price up and selling, only to by back in lower, I don't see it. The periods of consolidation, sell offs, triangles, and support levels seem to suggest a price discovery of an actual free market. They could be manipulating the price by a few percent up and down but I think everyone knows that if the market moves, there's no manipulating it.
Not sure, because all eyes on BTC? Manipulation would have to be on an individual exchange unless one could buy and sell simultaneously across all exchanges in order to get the Marketcap Board to move in the desired direction.
Why does virtually the entire board of coinmarketcap drop almost instantly, simultaneously, by roughly same order of mag percentage points, without any special news, without regard to any per-coin catalyst or anything else. Bam 1 instant wiped clear drenched the entire board in red within seconds.
Very informative video. It is apparent that there is bot price manipulation in the crypto space and even in the stock market. Sadly, there will always be greedy people and manipulation in every arena where there is money involved. Though since crypto is the future, I agree that the safest bet is to stick with the projects with solid fundamentals to survive in the long run . Thanks for sharing bro!
How to become bitcoin trader? Exactly like Bitcoin, multiple digital currencies exist in the marketplace. So if you prefer to buy a few other currencies which aren`t available on Indian Exchange than you can utilize Bittrex. All you have to do is locate an exchange that you favor. Cryptocurrency exchanges have a massive potential to modify peoples minds and opinions concerning cryptocurrencies generally speaking and their application in actual life. So even in the event the exchange is attacked, its still true that you have your money. Furthermore, the exchanges prepare each and every industry for Bitcoin expansion. Existing stock exchanges will also compete to be able to fulfill the users configuration requirements. Sooner or later later on, the prices will grow more equal, meeting somewhere in the middleyour profit is equivalent to the quantity of convergence. No matter how far it is from Kijun, it is likely to return and test that level at some point. The amount of bitcoin is perpetually changing. In the US, it is 1000 USD. Whats even better, seek the services of a seasoned lawyer or at least ask for an in depth consultation. So youve read the newspaper about the meteoric growth of crypto currencies including Bitcoin or Ripple. Then coming up with 1000s of exchange rates simply to go out and get groceries is nearly impossible. Many cities around the world provide a bitcoin ATM where you are able to trade cash for bitcoin. The cryptocurrency world isn`t efficient.