Was Bitcoin’s Record Price Surge Caused By One Single Trader?
According to new research on bitcoin transactions between March 2017 and March 2018 from University of Texas professor John Griffin and Ohio State assistant professor Amin Shams, the price of bitcoin was manipulated through large-volume trades that drove the price up.
The research claims that Bitcoin’s dramatic price surge in 2017 that saw it reach record highs was caused by a single cryptocurrency trader.
Daniele Mensi, CEO of Nexthash Group, commented on the research: “Bitcoin and other cryptocurrencies have inherent volatility which means they are ideal for traders and investors who want to trade quickly and transparently through blockchain-enabled platforms. Despite the peaks and troughs of Bitcoin, the value has gradually increased over the last few years and is expected to keep rising as it is more intensively mined up to the limit of the currency.
Because each transaction is logged and public, there is more transparency than traditional transactions, so traders should not be worried by studies like this, but should look at the market on a macro level rather than a short period in isolation. Of course, it depends on the type of investment people are looking to make, but on the whole, the blockchain technology that underpins cryptocurrencies is the tool that allows for greater transparency to everyone and in principle, shouldn’t favour one group of investors over another.”