While Bitcoin has managed to reclaim the $21,000 level, making it one of the best performing assets of 2023, a former SEC official claimed to know one of the key reasons for BTC’s resurgence.
John Reed Stark, formerly a member of the US Securities and Exchange Commission (SEC), said that market manipulation played a large role in BTC’s recovery.
“Bitcoin’s price is rising for one reason: Market Manipulation. A recent Forbes analysis of 157 crypto exchanges found that 51% of daily bitcoin trading volume being reported was likely bogus (and that was the tip of the iceberg)”
Citing a Forbes analysis of 157 crypto exchanges, Stark concluded that about half of the reported daily Bitcoin trading volume is likely fake. Of course, BTC advocates opposed Stark’s claims. In addition to this covert manipulation, some believe macroeconomic trends are behind this momentum of Bitcoin.
In a recent tweet, Galaxy Digital CEO Mike Novogratz offered two unconventional ideas as to why crypto is ‘rising’: “The Bank of Japan’s rapid liquidation to markets and China’s avoidance of regulatory sanctions on blockchain and cryptocurrencies. take a step back.”
According to Novogratz, this is “a topic to watch in 2023”. It is not yet clear how such factors will have an impact on the future course of Bitcoin, but the issue does not seem to be closed yet. However, the BTC price is about 70% below the record level it reached in November 2021.