U.S Justice Department to look into Bitcoin Price Manipulation
U.S Justice Department has launched a probe to look into the Price Manipulation in Bitcoin and other Cryptocurrencies according to a report from Bloomberg.
According to the report, the United States Department of Justice (DOJ) will be working alongside the CFTC (Commodities and Futures Trading Commission) to investigate mainly the illegal practices such as spoofing, fake orders, wash trading etc which are used to manipulate the price.
The investigation is said to be in the early stages and the regulators are mainly looking into Bitcoin and Ethereum according to the report.
John Griffin, a University of Texas Finance professor said,
There’s very little monitoring of manipulative trading, spoofing and wash trading,It would be easy to spoof this market.
It is known that Bitcoin price started to collapse after the futures was introduced in December by CME. The federal reserve also wrote a report on this.
The Gemini exchange also recently partnered with Nasdaq to monitor the Crypto markets.
The market has bearish for a long time now after reaching a peak of $20000, and a lot of Crypto Enthusiasts believe that there is a lot of market manipulation going on. Currently the price of Bitcoin is $7400.
2000 coins sold at market 15 minutes before Bloomberg published article "U.S. Justice Department opens criminal probe into whether traders are manipulating the price of Bitcoin"
Published at 4AM EST, just in time to be viral for the US open.
I love me a good conspiracy pic.twitter.com/lFNfdDwP01
— lowstrife (@lowstrife) May 24, 2018
Some terms mentioned:
Spoofing – When a trader submits a set of orders cancels it as soon as the market moves in the desired direction.
Wash Trading – When a trader trades with himself to make a false impression on the market
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