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Bitcoin Price Manipulation On Centralized Exchanges Seems Coordinated

Last Updated May 18, 2023 3:07 AM
Venzen Khaosan
Last Updated May 18, 2023 3:07 AM

a red and white sign that says manipulationThe Centralized Bitcoin exchanges seem to coordinate their prices across continental divides. One goes down – they all go down. The question is why the public tolerates their scam. If they were useful or desirable, they’d consider the very people who sustain the Bitcoin network, namely Bitcoin miners who, below $400, likely operate at a loss. Exchange clients and miners get whatever is happening in the busiest exchange. The exchanges’ arbitrage-bots equalize prices between one another. Miners – you’re the backbone of this innovation. Cryptomonkeys – you think you’re trading – but your centralized exchange rides you bare-back.

Centralized Exchanges Counting the Days
Global Economy
Bitcoin Price Manipulation
Bitstamp Volume

Centralized Exchanges Counting the Days

Central Bank, Central Government, Central Exchange. I’ve been stomping their foot in this column for a while now without any response. Of course, the centralized exchanges Bitstamp, BitFinex, BTC-e, BTC-China, Huobi, etc. won’t respond – they have no retort. They’re hoping no-one will notice, and suckers will just keep depositing bitcoins in their vulnerable, corruptible coffers. Proof-of-solvency. Proof-of-reserve. Proof-of-existence. Proof-of-brain-bamboozle.

What is a centralized exchange?

Bit-namex, legitimate “Western business institution” shopfront, a girlie secretary, AML, a slap on the back of their local centralized bank, slick color-coded website… you know the deal. It’s properly described as “legit”, like when you walk in the high-street bank, obediently provide your government papers, and surrender your hard-earned fiat to a uniformed lady for a fee – just to open the account. Then they charge you monthly for the service. Nice. You’re the patsy, my sucker citizen.


BitFinex Centralized Exchange

BitFinex says they’re based in Hong Kong.The British in Hong Kong are respectable and responsible, right? Yet, BitFinex has no license to show for their operation in Hong Kong.

two men sitting at a table with water bottles
“10 Trillion Japanese Yen extra QE? You’re crazy, Kuroda!”

Also read: Bitstamp Gives Accounts (and bitcoins) to Government

BeeTeeCeeEee Centralized Exchange

BTC-e. Exactly who is behind this exchange operating from Bulgaria without an address, email or public management structure? The Bitcoin Foundation members helped put DPR behind bars for smack and blow  – nothing strange, incidentally, to Wall Street or Silicon Valley  whom the Bitcoin Foundation are backside-licking for investment and regulation – yet, let’s ask the Bitcoin Foundation who exactly BTC-e is?

No answer because these centralized buccaneers talk respectable on the one hand but are riding the Bitcoin phenomenon as far as the public will allow them on the other. Put your bitcoins in an exchange, and you no longer control them. Buy and sell your bitcoins in the centralized public exchanges, and they’ll give you some pittance. Go buy and sell via Bitcoin OTC and you’ll be shocked what the exchanges and those in-the-know really get for their bitcoins.

Bitcoin Foundation Centralized Representative Democracy

The Bitcoin Foundation  and centralized exchanges are a scam – useful as long as it benefits you, you figure. With a blockchain in place, it needn’t be. Especially if the exchanges’ price management renders the most powerful innovation of our time limp and caught in a downtrend lasting over ten months. That’s not Satoshi’s vision, nor the developers, it’s the exchanges – Bitcoin Foundation sanctioned, centralized, co-ordinated, internally arbitrated, in collusion with the biggest regulated institutional players and unable to provide a sustainable market even for the miners that decentralize and subsidize this fantastical innovation for everyone’s benefit. Why would the Bitcoin Foundation assist the FBI but fail to lobby NYDFS or its own member exchanges for mining sustainability? Think about it, and you smell the stank for what it is: they’re not pro-decentralization, but actively working to undermine it.

Look to the Bitcoin Foundation  and the exchanges – not for answers to the above accusations, but for an imminent trajectory to the dustbin of history. They want to be somebodies? Decentralize yourselves and see if the majority still values you.

What do readers think? Please comment below.

Global Economy

Nikolaos Panigirtzoglou  of JPMorgan on QE’s “wealth effect”:

The decline in asset yields especially during QE3 created large wealth effects. Since the Fed’s QE started at the end of 2008 the PE multiple of the S&P500 index (12-month forward) went up by five points, from 10.5 at the end of 2008 to 15.5 currently. This PE multiple expansion is responsible for around 650 index points or 32% of the current S&P500 index level. Extending that to the total stock of US corporate equities ($29tr currently), it implies an equity wealth boost of $9tr.

Also read: Bitcoin Price Correlation Post-QE

Bitcoin Price Manipulation

Time of analysis: 17h00 UTC

These are the price junctures where manipulation forced price in the opposite direction than that dictated by wave principle:

BTC-e Daily Chart

a graph with a line of yellow stars on it

I’m not the first analyst to draw this conclusion, and I welcome any contribution for-or-against this Elliott Wave Principle based view.