NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Is Ongoing Bitcoin Price Boom a Pump-and-Dump Action?

Davit Babayan
Davit Babayan
1 year ago
2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The bitcoin price on Tuesday clocked a new 2019 high of $8,350 on Coinbase, its highest since July 2018.

The surge came as a part of an extended bullish action that picked momentum particularly after April 2, 2019. The BTC/USD instrument, on the day, rose up to 23 percent, which started a series of similar buying actions throughout April and first half of May. The strengthening bullish bias assisted bitcoin in breaking above crucial resistance areas, such as the ones lurking near $6,000, $6,400, and $7,500. As a result, the world’s leading cryptocurrency had brought its net bottom-to-up recovery to 162 percent by the time of this publication.

bitcoin, btc usd
Bitcoin Price Rose 101 Percent Since April 2 | Image Credits: TradingView.com

Artificial Pump?

The speed with which bitcoin rose prompted many to call the move “manipulated.” Crypto skeptic David Gerard wrote in his blog on Monday called the bitcoin price a “proxy for margin trading,” adding that one can make more money by manipulating the cryptocurrency’s “thin and ill-regulated market to burn the margin traders.”

Preston Byrne, partners at New York-based Byrne & Storm, built up to the scenario laid by Gerard, questioning why every bitcoin price boom coincided with a significant exchange(s) having “banking, withdrawal, and possibly solvency problems.” To him, the ongoing BitFinex was in a spot of trouble owing to its management of $850 million of customers’ funds. An event of such scale could have driven the bitcoin market down. But instead, the reverse happened due to potential price manipulation.

“This was the case with, e.g., Mt. Gox in 2013, and some have argued was also the case with long-suffering crypto exchange Bitfinex in 2017 […] If you’re a trader or investor, tread carefully. It is possible that the current price of a Bitcoin bears some relation to, and is uniquely vulnerable to, regulatory developments,” said Byrne.

Everyone seems to forget that when Bitfinex received CFTC subpoenas the price went up 40% in two days, ultimately the price of Bitcoin doubled before crashing.

It wasn't good news.

— Bitfinex'ed 🔥🐧 Κασσάνδρα 🏺 (@Bitfinexed) May 10, 2019

Tether Pumping Bitcoin

Gerard iterated that he didn’t believe institutional investors were behind the bitcoin price explosion. Instead, it was the Bitfinex’s additional 800 million USDT supply – each acting as a US dollar – that was piling into the bitcoin market. Excerpts from Gerard’s article:

“Tethers are dollar-substitute tokens — each a $1 liability on the books of Tether, Inc., hypothetically redeemable on demand for an actual dollar. The idea is that these are pretty-much-dollars — compare Eurodollars in the real financial markets — but move at the speed of crypto. Tether is owned and run by the same people as crypto exchange Bitfinex.

“There is the minor detail that nobody has ever verifiably confirmed being able to redeem a Tether for a dollar.”

The Other Bitcoin Case

https://twitter.com/Rhythmtrader/status/1127974397275451392?s=19

The bitcoin price rise closely followed disturbance prompted by the US-China trade war in the global markets. The move also came after mainstream financial companies like Fidelity Investments, E*Trade Financials, and TD Ameritrade announced new bitcoin trading services for institutional investors. Fidelity’s digital asset services head Tom Jessop told the Block that institutional interest in the bitcoin market had grown in the past 12 months.

“We just completed a survey of about 450 institutions,” said Jessop, “so everything from family offices to registered investment advisors to hedge funds. It’s interesting, I think about 20% indicated that they currently allocate to digital assets with an intention to grow that.”

Tweet123Share262ShareSend
Davit Babayan
Davit Babayan

Davit Babayan

Davit Babayan is an Armenia-based expat balancing the academic life of a software design engineer with the experiences of a financial technology journalist. He aspires to be a full-time columnist and wants to write a book that would be called, "A Homeless Who Found Bitcoin."

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Beste crypto ETF's 2025 - welke nieuwe ETF goedkeuringen komen deze zomer?

Beste crypto ETF’s 2025 – welke nieuwe ETF goedkeuringen komen deze zomer?

Nieuwe ontwikkelingen binnen de SEC lijken de lancering van meerdere crypto ETF’s makkelijker te gaan maken. Welke nieuwe ETF-goedkeuringen kunnen...

Lars Diederiksen 1 hour ago
Strategy

Michael Saylor’s Strategy Set To Yield $14 Billion Profit In Q2, Bloomberg

Strategy, formerly known as MicroStrategy, is on track to report an impressive $14 billion in unrealized gains from its extensive...

Ronaldo Marquez 2 hours ago

Solana (SOL) a un Bivio — Rimbalzo Probabile se i 142$ Tengono

Solana ha avviato un nuovo calo e ha ritestato la zona di supporto a 145$. Il prezzo di SOL ora...

clararosati 2 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Bitcoin

Public Firms Snag 131,000 BTC, Surpassing ETFs In Bitcoin Purchases

Ronaldo Marquez 11 minutes ago
한국, CBDC 공식 철회… 스테이블코인 급부상 속 베스트 월렛의 경쟁력 부각

한국, CBDC 잠정 보류… 스테이블코인 급부상 속 베스트 월렛의 경쟁력 부각

Soyeon Lee 16 minutes ago
Bitcoin

Long-Term Bitcoin Holders Near Pain Point Last Seen In October 2024

Christian Encila 1 hour ago

Premium Sponsors

Press Releases

  • FUNToken

    FUNToken Now Listed on Poloniex, Strengthening Global Reach...

    4 minutes ago
  • ミームコインプレセール急騰|SPX6900は11%下落も新星コインが注目集める

    ...

    14 minutes ago
  • 仮想通貨おすすめ|マイケル・セイラーのビットコイン購入が示す新たなBTC高値の兆候

    ...

    27 minutes ago
  • Hľadáte najlepšie kryptomeny na kúpu v roku 2025

    Hľadáte najlepšie kryptomeny na kúpu v roku 2025? Tu...

    39 minutes ago
  • Urgent Notice! ETHRANSACTION cloud mining revenue surges...

    2 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.