Less than a year bitcoin fell over 80% last year rose 1300% is market manipulation?

In the vicinity of $6000 bitcoin sideways for nearly two months since November 14th fell suddenly enlarged, led the entire virtual currency market slump; in November 25th, bitcoin again diving, inscribed in a day even below $4200, $4100, $3900…… The $3500 mark, compared to last year when the 12 month high of nearly $20 thousand, less than a year, bitcoin fell more than 80%.

About the collapse of bitcoin virtual currency led, many analysts generally believe that the main or early speculation, bitcoin virtual currency to the top of the bubble. According to Bloomberg News reported on November 20th, the U.S. Justice Department is investigating whether bitcoin last year 1300% of the increase is the result of market manipulation.


The industry believes that bitcoin crash is the result of many factors together, and regulatory upgrades will continue to put pressure on the currency currency bifurcation. The large block chain project there is a serious bubble, in block chain infrastructure is not perfect, the market is expected to continue to push practitioners highly unrealistic, eventually encounter the real attack.

In an American hedge fund manager Xue Gang (a pseudonym), bitcoin this rapid drop, is a digital encryption currency to strengthen supervision, BCH surface (bitcoin cash) caused by the hard currency circle bifurcation, constant internal friction and other factors, but they reflect the deep-seated reasons, is a large number of funds and retail investors opinions the height of the “consistent”, to support bitcoin prices artificially high admission.

Xue Gang on the twenty-first Century economic report revealed that a year ago, hedge funds launched a bitcoin digital encryption currency investment boom, when many hedge funds see bitcoin money effect and hedge asset characteristics, on the other hand, think more and more application block chain technology will continue to improve the landing scene bitcoin demand, and therefore have a lot of money to invest in bitcoin.

Prior to the “profiteering” also let many investors “red eyes”. “One coin a villa” is full of fantasy in the currency of the circle. In this regard, there is news that the U.S. Justice Department is investigating whether bitcoin last year 1300% of the increase is the result of market manipulation. According to the three informed sources told Bloomberg, although a few months ago, federal prosecutors launched a criminal investigation of encryption currency widely, but recently they have been suspected, involving a bitcoin, Tether and encryption currency trading platform Bitfinex network could be used to perplexing illegal price change.

“This year, in addition to the April rally that bitcoin digital currency net encryption portfolio rebounded more than 30%, in the rest of this investment portfolio in net worth fell sharply, so that more and more hedge fund arbitrage opportunities become elusive feeling.” Xue Gang said, in June a number of encrypted digital currency investment fund of more than 20%, the net loss at retail investors will continue to offer admission reduced circumstances, choose early liquidation leave. This also led to more and more hedge funds stop went away.

In this regard, the twenty-first Century economic reports, with bitcoin prices continued rapid drop, many hedge funds suffered Nintaus drain dilemma. To set up in December last year bitcoin investment trust fund Grayscale Investment as an example, when the encrypted digital currency investment fund by 2 times the market price to buy bitcoin (cash costs about $40 thousand today), in accordance with the bitcoin transaction price of $4000 is calculated, the net loss rate of close to 90%.

For bitcoin investors, last week in a Bloomberg News reporter in a telephone interview, OANDA Asia Pacific Business Director Stephen Innis predicted that this year at the age of 10 bitcoin short-term trading price fluctuations between $3500 to $6500, but is likely to fall to $2500 in January next year.

In addition, according to the Securities Times reported that the current bitcoin in a bear market, not good still can not support the current price. Bitcoin itself is unable to generate revenue, if there is no successor, selling stock market will be a persistent behavior, that is to say bitcoin prices will continue downward, and far in the end.

(self: daily economic news, securities times, Beijing morning news, twenty-first Century economic report, China Youth Daily)

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