Topic: Exchange being used to manipulate bitcoin price? (Read 1003 times)

Very nice chart to visualise the BID/ASK volume!

I think we may be seeing arbitrage causing the higher bid volume.

And also seeing that not only big dumps are happening, but probably lots of market sells, and mainly only limit bids.

The overall downward price trend, it appears counter intuitive, but I think it may be caused by the bots on BTC-E, bots are mainly moved by market orders, limit orders they just sit next to.

Funny thing about btc-e is that in last 3 weeks there are more buying than selling.



I've checked my implementation of their api and it looks good (as you can see on  spike at sept 23 there's still more buy so it's not inverted).
Bad thing they are not proviing historical api.
Maybe there's just some bull, but they follow the price (but then price should be higher, not always lower)

Here's for comparsion:
 - bitfinex https://i.imgur.com/WblU6k9.png balance - 30k sold
 - huobi https://i.imgur.com/7NdLCgP.png balance - 41k sold

As we all know: any trade on any exchange "manipulates" the whole market to some extent.

Given the task of lowering the market price of bitcoin as much as one could using a finite (and fairly modest) bankroll one might:

Find the exchange with highest percentage of bots (bots offer no support, they slide around, not favoring fiat or coin).

Hit is with large market sells followed by distributed moving limit bids to recover costs without fostering too much rise.

Anyone doing this would also be able to preempt and position themselves for the arbitrage opportunities that would follow and recoup some of the costs, and maybe even make a profit if they could take advantage of inertia/elasticity of inter exchange rate ripples they caused.

Using such a scheme one could apply constant pressure to the price, you would know you had reached your limit when your bankroll went down and the price no longer did, which would happen at the "real" support level when real humans started placing market buys.

Anyone preparing to buy ALOT of coin would have the motive to do this (I would expect it to be done).

yes, to maximize profit on free.
if they wanted to just cash out we wouldn't have a wave of new bears who are sitting here 24/7 spreading FUD, thats the work of paid shills.

otc buying will keep the price down until otc follow exchange rates ,  perhaps their volume 3-10 times more than exchanges but still follow exhange prices, the question is how long could it take  

if i were a big whale i would buy otc and dumping constantly on exchanges to push the price to the lowest level to accumulate as much coin as i can (buy on otc sell on exchanges, repeat, repeat)
nobody will see my buying order (offline), but everybody will see my big selling orders in the order books and will shift their orders too (to follow the "market")


probably exchanges know the truth ( who are the sellers, their volume,, miners, a lot of induvidials, only a couple of big players)  about why the price declining despite all of the good news  but say nothing about it

if i were the owner of for example Bitstamp (unregulated market, unregulated exchanges) and i can see that only for example 10 sellers who account for the 90% of the exchange's volume (by dumping bitcoins and constantly withdrawing fiat) then i would share it (the fact with some statistic, not the user infos)  to the public  (if this is not acceptable some users then they have the option to leave and use another exchange)
our goal is to spread bitcoin , but with this manipulation exchanges only slow down the adoption

average joe/newcomers  wont buy bitcoin until the price declining
i and many others wont say nobody to buy bitcoins because we dont want to lose our friends, if the price keep declining
the price will recover it is for sure but i dont want to get the negative comments form my friends that this investment suxxx , about half a year or more,
and i probably cant convience them to keep it when it lose half its value, so it will be too late for them and for our friendship  if the price will skyrockets 1 or  2 years

Why would someone with free coins care about pushing the price down and buying back in? To maximize profit on free?

More likely they are just cashing out before they get caught, but not so fast as to lose money from a crashing price.

someone with alot of stolen bitcoins is slowly dumping them pushing the price down.
while his paid shills try and scare people into selling to push the price even lower so that their master eventually could buy back in at lower prices.

Could be any other exchange. Not necessarly okcoin. That's not the point.

>suggesting to replace BTC-e with an exchange that's been confirmed to have reported fake bloated volume figures..

Yeah great idea. :/

Because of their low volume is being used to create a trend and manipulate bitcoin price?