A former SEC official who has become one of the most vocal critics of cryptocurrency is convinced that the recent price rise can be attributed to price manipulation
Bitcoin managed to reclaim the $21,000 level, emerging as one of the best performing assets of 2020, and a former SEC official believes he knows one of the main reasons for its resurgence.
John Reed Stark, former member of the Securities and Exchange Commission, opined that market manipulation is playing an outsized role in bitcoin’s recovery.
Citing a Forbes analysis of 157 crypto exchanges, Stark concluded that roughly half of reported daily Bitcoin trading volume was likely fake.
Of course, Bitcoin proponents pushed back against Stark’s claims.
Besides this unspoken manipulation, some believe that macroeconomic trends are driving this bitcoin’s momentum.
In a recent tweet, Galaxy Digital CEO Mike Novogratz suggested two unconventional ideas as to why crypto is “ripping apart”: Japan’s Bank of Japan introducing rapid liquidity to markets, combined with China foregoing liquidity. regulatory application of blockchain and cryptocurrencies. According to Novogratz, it’s a “story to watch in 2023.”
It remains to be seen what impact these factors will have on Bitcoin’s trajectory in the future, but the story seems far from over.
Bitcoin price remains down nearly 70% from its all-time high reached in November 2021.