Market capitalization (often shortened to market cap) is the approximate total value of a cryptocurrency, typically shown in US dollars. The market cap of a cryptocurrency is calculated by multiplying the number of coins or tokens in existence by its current price. Bitcoin’s most unique advantage comes from the fact that it was the very first cryptocurrency to appear on the market. It has managed to create a global community and give birth to an entirely new industry of millions of enthusiasts who create, invest in, trade and use Bitcoin and other cryptocurrencies in . Sep 27, · These futures contracts are optimal for manipulation. They are settled in dollars and not in bitcoin. The price for the settlement is determined by the bitcoin price in the underlying market. Thus, it is never actual bitcoin that change hands, and it is just an overlying market traded in dollars.
Manipulate bitcoin marketThe Mechanics of Market Manipulation - CoinDesk
It is also highly likely that they acquired their cryptocurrency when it was worth a fraction of its current value, which is even more reason to sell some. Bitcoin was created and developed by a small, tight-knit community of technology gurus and entrepreneurs.
Satoshi Nakamoto remains anonymous, giving even more weight to the notion of a group of people controlling a substantial stash of it, having got in way back when BTC was worth a couple of dollars. It is possible that these Bitcoin whales know each other and could possibly coordinate their selling strategies so as to maximize profits. When Roger Ver was asked about if Bitcoin whales could work together in such a regard, he told Bloomberg:.
I suspect that is likely true, and people should be able to do whatever they want with their own money. Due to the nature of Bitcoin being a currency and not a security, there is no regulation which prohibits trading as a group to manipulate market prices.
Co-founder of crypto hedge fund Tetras Capital, Alex Sunnarborg, claims that the top Bitcoin addresses control Market domination by a minority of whales is nothing new, though. The banking sector has seen similar action for decades, as the bigwigs at the top grow fatter at the expense of the majority. With cryptocurrencies, though, it may be less likely as the founders and big holders are more ideologically oriented, which, in theory, makes them less likely to manipulate markets for their own gain.
Are you concerned about the possibility of crypto whales manipulating the markets? Do you think that such an action will occur with Bitcoin? Let us know your opinion in the comments below. Could you be next big winner? I consent to my submitted data being collected and stored. Treasury, looking to decrease the reporting requirements Market manipulation might seem to be a big word. People feel that this can be done only with Billions of dollars and that too by big corporations.
However, that is not true. Source: TradingView. The decline occurred in less than 5 minutes. And the whales did not need to dump 3. And it is a tiny amount compared to the transaction size taking place in the exchanges every day. Save my name, email, and website in this browser for the next time I comment. Advertising Submit Press Release. Sign in. Log into your account. Password recovery. By - Sabyasaachi Karmakar. The dark side of BTC exchanges. June 4, Last Modified date - June 4, How do BTC whales engage in market manipulation It is a myth that Bitcoin whales are only responsible for the crashes.
They move the markets with either Bear-trap or a Bull trap. If they cause a Bear-trap, they can get the people to sell early. If it is a Bull trap, people go on a buying frenzy. House of Representatives.