Bitcoin collapses as academic says price was artificially inflated during boom

Bitcoin collapses as academic says price was artificially inflated during boom

The world’s most famous cryptocurrency exploded in value last year – but was it all the result of malign meddling?

The price of Bitcoin has slumped to a low that hasn’t been seen since before the boom times of late 2017.

One Bitcoin is now worth a depressing $6,370 following claims that last year’s price explosion was caused by artificial market manipulation.

In a paper published today, John M. Griffin and Amin Shams from the University of Texas used algorithms to analyse blockchain data and found that trades of a cryptocurrency pegged to the US Dollar were ‘timed following market downturns’ and resulted in ‘sizable increases in Bitcoin prices’.

Bunch of idiots destroy 320,000,000 years of history in a few stupid seconds

This manipulation was ‘associated with 50% of the meteoric rise in Bitcoin and 64% of other top cryptocurrencies’, they said.

We have decided not to name the rival cryptocurrency named in the study.

Bitcoin collapses as academic says price was artificially inflated during boom

This graph shows the plunging price of Bitcoin over the past month (Graphic: Coindesk)

The price slump also comes after the South Korean virtual currency exchange Coinrail said hackers stole more than $37 million, or almost a third of the virtual currency it had stored.

After Coinrail announced the theft, the price of bitcoin dropped $500 in an hour and has continued to slide.

There was more pain for Bitcoin investors after a Wall Street Journal report said US regulators have asked virtual currency exchanges to provide trading data to aid an investigation into virtual currency manipulation.

UK

The reports raised concerns about the future of virtual currency markets.

David Jones, Capital.com’s chief market strategist, says Bitcoin is ‘a classic case of an economic bubble’.

Last year, the virtual currency increased sixfold and hit a record high of $19,783 in December.

MORE: Bitcoin price could hit ‘near-zero’, co-founder of rival cryptocurrency Ethereum warns

Read More

Did you like this?
Tip Cryptos UK with Cryptocurrency

Donate Bitcoin to Cryptos UK

Scan to Donate Bitcoin to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate Bitcoin Cash to Cryptos UK

Scan to Donate Bitcoin Cash to Cryptos UK
Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate Ethereum to Cryptos UK

Scan to Donate Ethereum to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some Ether:

Donate Litecoin to Cryptos UK

Scan to Donate Litecoin to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate Monero to Cryptos UK

Scan to Donate Monero to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some Monero:

Donate ZCash to Cryptos UK

Scan to Donate ZCash to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some ZCash:

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.