‘Striking’ Bitcoin Market Manipulation Revealed

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Bitcoin and cryptocurrency markets are in turmoil tonight after the disappointing launch of the hotly-anticipated Bakkt crypto platform...

as investors balked at Bakkt's low bitcoin trading volume.

Now, new research has warned of a"striking systematic trend" in bitcoin price movements, with bitcoin falling far further than average ahead of CME's bitcoin futures contracts being settled each month.LightRocket via Getty Images Bitcoin has dropped on average 2.27% towards settlement each month, compared to an average fall of just 0.06% on a random day over the same period, bitcoin and cryptocurrency analysts atAdjusting for"large outliers," researchers found the average price movement up 0.04%, while for the period before CME bitcoin futures contracts are settled the price falls by 1.99% on average.

"Statistically, it is highly unlikely that the price falls in advance of CME settlement should be caused by mere coincidence," Arcane's Bendik Norheim Schei wrote. "The figures thus support a hypothesis that the bitcoin price is manipulated in advance of CME settlement. However, the figures do not say anything about deliberate manipulation or, for example, only a result of investors’ strategy of hedging," Schei added, acknowledging"other factors" could"potentially explain the pattern, or show that it is even stronger," and calling for further analysis....

 

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