Somebody in a high place must’ve lost a ton of money when shares of the cryptocurrency Bitcoin dropped below $8,000 yesterday. Probably some rich privileged sucker who’s upset he took a bloodbath and decided to use his clout and connections to get an investigation going into something because he did a dumb thing and invested in something he didn’t understand and lost a sh*tload of money as a result. Nah, just kidding. That guy wasn’t really all that much of a sucker. Not anymore than most of us are anyway. Just a person looking for a quick come-up, just like most of us are. I admit, like anyone else, I too tried to jump on the Bitcoin train hoping to make a few quick bucks. With no knowledge of what Bitcoin does, where Bitcoin headquarters is located, how much volume Bitcoin has on a particular day, what some factors are that makes the stock price rise or drop so sharply, or even the slightest idea of what the f*uck Bitcoin is, I invested the hefty sum of $5 usd in the cryptocurrency on Tuesday. I honestly just wanted to see what would happen. I got in at somewhere around $8300/per share. I checked on the stock a few hours later to see what was poppin’, and shares of Bitcoin were trading below $8000. a $300 + decrease in just a few hours time. I took my four dollars and some change that I had left and happily walked away knowing I could say I had officially traded some Bitcoin, like all of the cool kids. Unlike the cool kids, I didn’t loose a big percentage of my total portfolio investing in that shit. Something like Bitcoin is much too volatile of a thing for a broke person like myself to seriously invest in. I lost pennies in a few hours, but for those who are heavily invested in Bitcoin, that quick drop could have been worth a few thousand, a few hundred thousand, or even a few millions! I assumed the price of Bitcoin dropping so much in such a short period of time was normal protocol for the cryptocurrency, but according to a new criminal probe just opened by the DOJ my thinking may have been wrong.
Bloomberg (@business) reports, the Justice Department has opened up a criminal probe into whether traders were manipulating the price of Bitcoin and other digital currencies, dramatically ratcheting up U.S. scrutiny of red-hot markets that critics say are rife with misconduct, according to people familiar with the matter.
The investigation is focused on illegal practices that can influence prices such as spoofing, or flooding the market with fake orders to trick other traders into buying or selling, the people who asked not to be identified because the matter is open, ongoing, and private said. Federal prosecutors are working with the Commodity Futures Trading Commission, a financial regulator that oversees derivatives tied to Bitcoin, the people said.
At the time of writing this, Bitcoin has rebounded a little from where it was this morning when the stock was trading at barely above $7000. Bitcoin has rebounded to 7,534.37/share as of 8:44 pm Thursday night. Even as I just typed this it continues to quickly fall. It’s now at $7,528.62 and dropping.