The Strategist

Bitcoin conquers new high, equals PayPal


08/15/2017 - 15:00



Bitcoin is updating the new highs. The main crypto currency’s cost reached $ 4400, and Bitcoin’s capitalization has equaled capitalization of PayPal payment service.



BTC Keychain
BTC Keychain
Bitcoin caught up to capitalization of one of the payment services. And although the cryptocurrency is still far away from Visa, this can be considered an intermediate success.

Popularity of the crypto currency is fueling expectations of demand from institutional investors, and some experts are quite sure that central banks will soon start using bitcoin as reserves. And although what is happening on the market is more like a fever, people are investing in crypto-currencies and this has to be taken into account.

Earlier, Goldman Sachs investment bank once again raised the forecast for Bitcoin’s price - to $ 4800. However, given the current growth rate, soon the forecast will have to be revised again.

Yet, even these forecasts can be very conservative: some experts compare popularization of the crypto-currency with the spread of the Internet in 1995.

Then, the number of users of the global web grew from 1 million to 10 million in just a year. And the next year, when the Netscape browser appeared, the number of users grew to 100 million. So it cannot be excluded that the number of holders of crypto currency will soar tenfold 50 million or 100 million. And then the cost of bitcoin can reach already $ 50 thousand.

Besides, market participants have long been saying that the first exchange-traded fund (ETF) of crypto-currencies can appear in the US, and this also fuels the optimism of market participants. For example, it became known that VanEck company has applied for creation of Bitcoin ETF.

It should be noted that in the first half of August Bitcoin, along with gold, acted as a kind of protective asset against the background of fears of an escalation of the conflict in the DPRK.

How a mysterious trader is skillfully manipulating Bitcoin

More than three years ago, in May 2014, the media wrote about how bots manipulated Bitcoin’s price "with the help of large-scale fraudulent trading" on the Mt.Gox digital currency exchange. In particular, one of the schemes led to the collapse of the exchange. The latter stopped trading in 2014.

Many traders began to notice suspicious behavior on Mt. Gоx then. Every 5-10 minutes someone bought 10 to 20 bitcoins without stopping for a month until the end of January. The operations were carried out by two algorithms, later called "Willy" and "Markis". Each time an account was created, it was used to buy bitcoins for the same amount of dollars. Soon a new account was created, and everything was repeated in a circle.

In total, about $ 112 million was spent to buy about 270 thousand bitcoins, the bulk of which was bought in November. So who was the cause of what was happening and why?

Ultimately, this alleged manipulation did not help Mt.Gox: the stock market collapsed, which was the largest and most famous fraud in the crypto currency market.

This case is better not to be forgotten, because now, when bitcoin is trading above $ 3 thousand, there are rumors about a certain trader "with almost unlimited funds that manipulates the crypto currency market." This trader has already been called Spoofy because of his attempts to "spoof" the market, primarily on Bitfinex.

source: cryptocoinsnews.com




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