Single Trader with Enormous Bankroll is Manipulating Bitcoin Price, But to What End? Rumors are swirling about a trader with nearly unlimited funds who is manipulating the Bitcoin markets. This trader, nicknamed "Spoofy," received his nom de guerre because of his efforts to “spoof” the market, primarily on Bitfinex. https://cointelegraph.com/news/sing...is-manipulating-bitcoin-price-but-to-what-end
Why blame a single operator. The entire bitcoin market is a giant scam. Don;'t feel bad, people say that about the USD. But I'm saying it about #btc.
My little sum I bought a few years back would be worth 8 million today. The reason I sold? It felt very shady, and I was never going to hold onto something like that. In hindsight if I knew it was going to be manipulated I'd of bought 100x more. Yay for no regulations!
1. So somebody is pushing the price of an unregulated and sometimes thin trading instrument up and down for profit? You don't say! 2. Why would he need to spoof it when with "unlimited" funds, he can easily effect the price both ways? 3. Since there isn't much arb between brokers, if he is using a broker with a thin order book, it doesn't even take much money to be able to effect price. So why are we surprised at this? I always thought people with tons of bitcoins like the Winklewii should effect the price for stabilizing reasons. For example a runaway currency might be good for holders, but not so good for establishing trust. They could have put up a huge sell wall with their 100K coins limiting upward movement. The same when the price was dropping, if they had cash, they could have put up a huge buy order limiting the fall, while enriching themselves... But that is just me, thinking of bitcoin as a currency and I am clearly wrong...
Daxx10's opinion in the comments: "Here's my hint: It's not someone using the exchange; it's the exchange software. How can we know? 1) Because, if Spoofy's bot-trade placed an order for $60mn and the price moved across it while his net connection was down for 30 seconds, he'd be wiped out. Clearly, he's aware that there's no possibility of that happening. 2) Because there always seems to be one and only one Spoofy per exchange putting up walls otherwise they'd get some fun taking each other out because they're playing exactly the same game making it less likely to be a profitable game."
I wonder if someone is thinking that because he has unlimited funds, he can beat the market, or become the market ? But then didn't the Bank Of England - with unlimited funds- have serious problems when Soros & Al decided they could transfer part of some unlimited funds into their own hands ? More importantly, will this person informs us IF his unlimited funds get transferred in honest ways ( trading) to someone's else accounts?
Any advantage does help. However, the market is always right - no matter what ( including unlimited funds).
It looks like a test run by the big money to test floors before getting in themselves. If you can create a floor, then you provide some measure of comfort to the holders of the coins.
OK. I was really wondering if a bull move on bitcoins were not just too early now. But now, that it would be kind of preparing a price floor before a bull move makes sense. Just to understand how they do that : when they create a floor, does it mean that there won't be any big dip , as it occured recently on bitcoins?