Post
Topic
Board Trading Discussion
Re: Cryptocurrency Market Manipulation Logic?
by
Silberman
on 28/06/2021, 16:14:17 UTC
Greeting BT Users,

As I am involved in the crypto world for the past 3-5 years and closely watching BTC when its price was around $400 - $700. When the BTC first pumped in 2017/2018 than it creates chaos in the whole world and more and more users are attracted because of the profit they see, but when the price suddenly down and BTC dumped to $5000 from $20k then a lot of new as well as experience users lost their money and also trust from Cryptocurrency.

Recently BTC again pumped and the price reached $60k and was predicted to touch the target of $100k but again the BTC price dumped around $35k - $38k. From all this pump and dumped I did not yet UNDERSTAND that why and how this happens and the difference is huge. BTC is considered the king of the crypto world and it causes the price Pump and Dumped of all the coins. Also Crypto market is untrustable as any person having a status/huge bank balance can easily manipulate the market as Elon Musk did.

Any expert can explain the reason behind those huge pump and dumped of BTC?
Almost everything can be explained by the supply and demand, the supply of bitcoin even if it is not fixed is very inelastic, this means that a great deal of the coins that have been mined are not really in the market as they are in the hand of holders, and since you cannot mine a lot more of it due to the fact that the rate at which new coins are created is predictable then this makes the market very volatile, then when you add that people use leverage this adds artificial demand which disappears as soon as people begin to panic creating the dumps that we see.