A paper reporting on suspicious trading activity on a BTC currency exchange
- Says cryptocurrency has been subject to security breaches, wild price fluctuations
- Cites the impact of suspicious trading activity on the Mt. Gox Bitcoin currency exchange
- USD/BTC exchange rate rose by an average of 4% on days when suspicious trades took place, compared to a slight decline on days without suspicious activity
- A single actor likely drove the USD/BTC exchange rate from $150 to $1000 in 2 months
This form an academic journal (Journal of Monetary Economics).
Its impressive that a single player took the price up by a factor of around 7, from USD150 to USD1000 in a couple of months. This happened in 2013.
What's not impressive is it took the academics 5 years to figure out manipulation was happening ;-)
