Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A7027660900727742464
#BitCoin #Whale #Price #Manipulation #FakeMoney #FreeMoney: A single, still unidentified, Bitcoin “whale” almost singlehandedly drove the token’s giant run-up in late 2017 and early 2018 by distorting the trading in the token… And It is Likely Happening Again…’someone, or a group, was using that freshly printed “free money” to #inflate #Bitcoin’s #price for their own #profit.’ https://lnkd.in/gH2eU7_d
– John M Griffin, a #professor of #finance at the Texas McCombs School of Business: Google Scholar Page: https://lnkd.in/gsv8Tf87 .
Toward the end of 2022, another mystifying trend caught Griffin’s eye. Despite the #crypto #crash and myriad other negative forces, every time Bitcoin briefly breached the $16,000 floor, it bounced above that level and kept stubbornly trading between $16,000 and $17,000. Almost unbelievably, as the #crypto #market has continued to unravel into 2023, Bitcoin has gone in the opposite direction, #trading up 35% since Jan. 7 to $23,000.
As Griffin and Amin Shams, then a doctoral candidate at McCombs who’s joined Griffin screened for misdeeds in 2017, they were fascinated to see that a little-known token that’s supposed to be backed one-for-one to the dollar was getting printed in large quantities. That clue led the pair to another: When new batches appeared, the price of Bitcoin seemed to jump. It looked like someone, or a group, was using that freshly printed “free money” to inflate Bitcoin’s price for their own profit. He and coauthor Shams sifted through an incredible 200 GB of #trading data and followed sales and purchases from 2.5 million separate #wallets.
In 2018, they coauthored a #groundbreaking JoF #study showing that a single, still unidentified, Bitcoin “whale” almost singlehandedly drove the token’s giant run-up in late 2017-early 2018 by distorting the trading in the token: https://lnkd.in/gspSxDaf .
Toward the end of 2022, another mystifying trend caught Griffin’s eye. Despite the crypto crash and myriad other negative forces, every time Bitcoin briefly breached the $16,000 floor, it bounced above that level and kept stubbornly trading between $16,000 and $17,000. Almost unbelievably, as the crypto market has continued to unravel into 2023, Bitcoin has gone in the opposite direction, trading up 35% since Jan. 7 to $23,000.
“The same mechanism we saw in 2017 could be at play now in the still unreal Bitcoin market.”: For Griffin, the way normally super-#volatile #Bitcoin went calm and stable in the stormiest of times for crypto fits a scenario where boosters are uniting to support and juice its price. “If you’re a #crypto #manipulator, you want to set a #floor under the #price of your coin,” added Griffin. “In a period of highly #negative #sentiment, we’ve seen suspiciously solid floors under Bitcoin.”
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