Traders investigated for market manipulation, Bitcoin rises in price
As news breaks today that traders are being investigated by the US Justice Department for market manipulation, Bitcoin’s price rises by 3%.
The Department of Justice has launched a criminal investigation into traders accused of manipulating the price of Bitcoin and other digital currencies.
Investigators are targeting those who partake in illegal practices that can influence prices.
Such market manipulation includes “spoofing” or flooding the market with fake orders to deceive other traders into buying or selling cryptocurrency.
The DoJ is working with the US CFTC (Commodity Futures Trading Commission) to bring bad actors in the space to justice.
In true Bitcoin-style, keeping its reputation for being unpredictable and volatile, promptly rose by 3 percent as details emerge.
Why is Bitcoin’s price rising?
Some of Bitcoin’s most dedicated traders don’t seem to know why prices are rising.
One possibility could be that the recent drop in price was due to insider knowledge of the investigation before news broke.
If a sell-off has already occurred, it could mean the damage has already been done.
This is highly speculative, however.
On the Telegram chat group called the WhaleClub, opinion was split over whether to buy now or wait for a collapse.
The group, where more than 34,000 members discuss bitcoin price moves all day couldn’t decide whether a crash has happened, or is about to happen.
One trader named WOMBATMAN believes this is the best time to invest, reporting to other group members: “I just sold my kidney just for this moment :)”
Meanwhile, another user named JM offers a conflicting viewpoint, saying: “Gonna crash so hard soon.”
As some traders attempt to fathom the impact of the market manipulation, others post memes to keep HODLer’s spirits high.
Rogier, an administrator of the WhaleClub says the rally was a bear trap.
A bear trap is a rally that looks like it might collapse but in reality would continue, therefore exposing bearish traders who went short.
A number of the theories were mulled over by WhaleClubbers, however, one pundit perhaps summed up the behavior of the market most accurately by simply stating:
“What the heck is going on”