Bitcoin fee drop news: Why is bitcoin going down? BTC falling today
Bitcoin assesses are dropping today amid a price manipulation scandal.
The cryptocurrency hew down more than 1 percent today to trade at $7,539, as of 6.30pm BST.
BTC documented a hit with news the US Justice Department would be launching a criminal research probe into price manipulation.
The cryptocurrency market has lived subordinate to the shadow of regulation since its inception, but the latest development could meaning the market closer to regulation.
The rest of the market seems to be fairing justly against BTC, with Ethereum trading at $588. Ripple rose 4.79 percent to mercantilism at $0.625, while Litecoin rose to trade at $122.
Why is bitcoin going down?
Despite its useful results in the previous few weeks, bitcoin is taking a hit amid a price manipulation dirt.
The US Justice Department suspects traders are now manipulating BTC prices, an illegal style in regular markets.
Bitcoin prices have fallen by $8,000 in the last year
The Equitableness Department is focussing on certain tricks that can influence prices of digital currencies, numbering spoofing which sees traders flood the market with imitation orders before swiftly cancelling them, duping other wholesalers into buying or selling.
The practice has afflicted various other dynasty markets, but this is the first investigation into cryptocurrency and how the market is run.
John Griffin, a University of Texas business professor who has studied manipulation said: “There’s very little prefect of manipulative trading, spoofing and wash trading. It would be easy to spoof this customer base.”
Because of the inherently anonymous nature of cryptocurrencies, authorities worry bitcoin could be expediting fraud and price manipulation, especially considering the wild price fluctuations and volatility that are known to hit the cryptocurrency make available.
The bitcoin price has taken a 20 percent hit form its May 4 peak, as bye-law speculation circles the market.
The Justice Deparment fear the customer base could facilitate fraud
Concern over the ability to manipulate salesmen in the cryptocurrency market has forced other countries, like China and Japan to either ban or fully oversee cryptocurrency exchanges.
The increased scrutiny has seen bitcoin prices off more than $8,000 from 2017’s high.
Some demand participants have alleged that crypto manipulation is rampant. Keep on year, a blogger flagged the actions of “Spoofy,” a nickname for a trader or order of traders that have allegedly placed $1 million hierarchies without executing them.
A Justice Department spokesman and CFTC legals are yet to respond or comment.