US Government Launches Criminal Investigation into Bitcoin Price Manipulation
Can US government really police the world especially if most bitcoin trades come from Asia? On the other hand, will it not be a good thing for federal investigators to arrest all the Fuders / greedy traders that purposely send out fake news and lies in order to manipulate price for their greedy groups.
According to an article in bloomberg.com
The Justice Department has opened a criminal probe into whether traders are manipulating the price of Bitcoin and other digital currencies, dramatically ratcheting up U.S. scrutiny of red-hot markets that critics say are rife with misconduct, according to four people familiar with the matter.
The investigation is focused on illegal practices that can influence prices -- such as spoofing, or flooding the market with fake orders to trick other traders into buying or selling, said the people, who asked not to be identified because the review is private. Federal prosecutors are working with the Commodity Futures Trading Commission, a financial regulator that oversees derivatives tied to Bitcoin, the people said.
Authorities worry that virtual currencies are susceptible to fraud for multiple reasons: skepticism that all exchanges are actively pursuing cheaters, wild price swings that could make it easy to push valuations around and a lack of regulations like the ones that govern stocks and other assets.
This above news caused most cryptocurrencies prices to enter red territory : according to coinmarket cap . Moreover daily price manipulations do affect day traders and not those who buy and hold in the long term
**Opportunity to buy **: day traders should see this as a blessing in disguise ie opportunity to buy cheap and sell high in the coming days and those who think long term should see it as an opportunity to buy some cheap coins/ tokens and HODL.
Regulations:Markets fall whenever there is news of regulation , however some regulations are indeed good because extremely greedy traders and exchange owners do manipulate price with fake news and trading bots leading to FUD or FOMO. Therefore we all should not focus on daily news rather think long term because cryptocurrencies are here to stay.
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