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Bitcoin price LIVE: Bitcoin crash likely as yet ANOTHER hack attack rocks cryptocurrencies | Express.co.uk

8.44am – UPDATE – Is bitcoin’s price controlled by bad actors?

Bitcoin $12,080.

Ethereum $1,068.

Ripple $1.34.

A shocking new academic study has revealed that so-called “bad-actors” manipulated bitcoin’s price, pushing it from $150 to $1,000 during periods of frenetic trading.

The paper titled Price Manipulation in the Bitcoin Ecosystem shows how Bitcoin markets are being manipulated by one or two big players.

The paper looks at two spells of suspicious trading activity on the Mt. Gox Bitcoin currency exchange, in which approximately 600,000 bitcoins (BTC) valued at $188 million were “fraudulently acquired”.

The authors, Neil Gandal, JT Hamrick, Tyler Moore, and Tali Oberman write: “During both periods, the USD-BTC exchange rate rose by an average of four per cent on days when suspicious trades took place, compared to a slight decline on days without suspicious activity.

“Based on rigorous analysis with extensive robustness checks, the paper demonstrates that the suspicious trading activity likely caused the unprecedented spike in the USD-BTC exchange rate in late 2013, when the rate jumped from around $150 to more than $1,000 in two months.”

Here’s where it might get a little concerning for all those in mainstream finance looking at digital currencies as an investment option right now – the manipulation was caused by two bots named Markus and Willy that were seemingly making (at least to the market) valid trades but did not actually own the bitcoin they were using.

During the Mt. Gox hack a number of these bots were able to create fake trades and make off with millions while not investing anything or carrying any risk, but manipulating the price of bitcoin and making off with the price difference.

Read complete article here:

Bitcoin price LIVE: Bitcoin crash likely as yet ANOTHER hack attack rocks cryptocurrencies | City & Business | Finance | Express.co.uk.