Manipulation and economy are two sides of the same coin. Market manipulation is a violation where there is a purposeful effort to meddle with the market and generate synthetic, inaccurate or misleading representations of any currency. But can Bitcoin Price be manipulated? Let’s take a look at it in more detail.
Bitcoin Price and the Chamber of Secrets
When it comes to stock or economy market then manipulation is nothing new. There are many reports which also states that the crypto market has also undergone a market manipulation. But these are just speculations. It’s rather difficult to manipulate a Bitcoin market that is based on different technology known as decentralization.
There are various opinions and reports on this issue. Some think that the Bitcoin Price can be manipulated. For example, if 50% of the supply is in someone’s control then it can be manipulated because the supply is the major weapon to manipulate Bitcoin Price. If the supply of bitcoin is lessened the price will increase and if the supply is increasing the price will drop. Now, If 50% of the supply is in someone’s wallet then that person can control it by purchasing and trading bitcoin.
But if you study it closely then Holding that significant amount of bitcoin is not needed to manage the price. It is not required, exchanges have displayed the capability to manage the market but the amount of Bitcoins they have is still debatable.
But if you study the other side then you will find that Bitcoin price swings mainly due to state plans in specific countries or exchanges, and plans of some nations against its acceptance. China, Korea and other nations where there are Yes and No plans on bitcoin definitely influence Bitcoin price. Specific kinds of news can also influence people’s conclusions as regards Bitcoin. But it is not always good to say that Bitcoin Price can be manipulated. In other words,
If Bitcoin goes up to $2000 in a day = It is a natural growth, But if Bitcoin goes down $2000 in a day = It is a manipulation?.
Now, the only thing which can manipulate the BTC price is unity. For instance, if all people agree to place themselves to exchange their Bitcoin for one common price then they will sort of build a barrier that will further limit its price to decline below it. In this way BTC price can be manipulated.
Top 3 Cryptocurrency Trading tools for Beginners
Now, if you study the Bitcoin price chart and conclude that the Bitcoin price can be manipulated then remember that the charts only describe the balance between consumers and sellers over a particular period. The Trading bots are nothing but automated programs for trading strategies. These bots don’t do anything else. They simply watch the trading edicts inscribed in a programming language. For example, if there are more purchasers in the Bitcoin market then users will see the increase in the Bitcoin Price and vice-versa.
Conclusion
In other words, whales control the bots which follow a particular algorithm but that doesn’t suggest they manipulate bitcoin. The Bitcoin market is decentralized and no one can control bitcoin but of course, if you hold more bitcoins then you can certainly influence the BTC price, but you don’t control the entire market.
