I received some information from a friend in China reinforcing that Bitcoin price is being manipulated in China. If the information is correct, as I believe it is, this manipulation helps explain the wild Bitcoin price volatility recently. He has requested that his name and location not be identified.

Here's what I heard.  Bitcoin wealthy owners, traders, exchangers and miners meet 24 hours a day at secret places near a large China Bitcoin miner. Attendees divide themselves into 2 groups -- Bitcoin buyers and sellers. At a time agreed on by a majority of both group members, buy group buys the seller group offerings. To manipulate price up, sell group sells at a significantly higher price than market price - buy group buys seller group offerings. To manipulate price down, sell group sells at a significantly lower price than market price - buy group buys seller group offerings. Buy and sell groups switch to sell and buy groups after each offering thus balancing member profits over time.

Seems reasonable to me.