I knew there was price manipulation going on in the crypto markets, but thought it was the futures markets being used to do it.
And I knew Tether/Bitfinex was crooked, but thought that was solely lying about cash reserves, causing them to be investigated for that.
This takes it to a whole new level by combining the two!
See: Bitcoin’s Price Was Artificially Inflated Last Year, Researchers Say
IMHO as a layman investor, this is still a great industry to invest in longterm because of the revolutionary importance of the underlying tech. But in terms of market timing for investing, now would be a time to just hold, not buy. Right now you'd be trying to catch a falling knife.
The market has been bouncing sideways, so you've already seen a lot of volatility after the plunge in Jan. (which it seems was caused by Bitfinex stopping their antics while under investigation), but even though that manipulation was already priced out of the market back then, the reaction as this news spreads will likely bring the market down even further.
If you haven't already invested, when you see a 20% price drop from where we are now, that may be an ideal time to get in. I say "may" only because I'm not psychic in predicting these markets nor a professional financial adviser, so who really knows. But I personally would wait another 20% before buying more given these revelations.
What do you intend to do? Start buying the dip, wait it out, or get out of a market you now think is totally FOS?
(Photo source: Pixabay)
Resteems always appreciated