Today Forbes reported that there are many factors affecting cryptocurrency price volatility:
The cryptocurrency company Bitconnect is subject to a recent class action lawsuit. It is an alleged Ponzi scheme and investors claim that they have lost 100’s of 1000s of dollars. Since the lawsuit, Bitconnect has lost a huge amount of market capitalization. They have also lost 100s of millions of client coins affecting cryptocurrency price volatility.
There is increasing evidence that many of the bitcoin and other cryptocurrency investors are not just gambling with money they can’t afford to lose, but they are gambling with money they don’t even have — by purchasing cryptocurrencies by taking advances on their credit cards. This level of risky investment is also contributing to the wild ride of cryptocurrencies.
As big as these numbers are, they pale in comparison to the research paper entitled “Price Manipulation In The Bitcoin Ecosystem” as published in the Journal of Monetary Economics that one person was able to drive cryptocurrency price volatility by manipulating the price of Bitcoin in 2013 from $150 to $1,000.
