How Big Corps and Countries are manipulating the Crypto Market!
Today JPMorgan Chase chief executive Jamie Dimon doubled down on his past criticisms of bitcoin, declaring it a "fraud" and saying he would fire any trader known to be trading the cryptocurrency. Along with China rumors continue to create small drops as the market begins to arise.
This Double Down from Mr. Dimon being his remarks in 2015 that Bitcoin is a bubble that is about to burst, when it hit 400$. Also saying there is no way that Cryptocurrency will survive.
In March of this year though, JPMorgan along with other big businesses created a version of Ethereum known as Quorum that the bank has been using in tests to move money between JPMorgan branches in different countries.
The interesting thing about spreading unconfirmed news or crying wolf, is the impact is has on the markets. When fear circulates throughout the ecosystem, weak and uneducated hands are scared into action. They begin selling tokens. A panic ensues. More weak hands sell, and the market sees a temporary selloff.
Yet the people who spread the rumors and are aware of these bumps through inside info can just sell on the top, make a profit, and then buyback on the low. The cycle continues. This lesson illustrates how markets can be manipulated based on news alone, without necessary action.
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