Former SEC Member Says “The Main Reason” for Bitcoin’s (BTC) Rally, Reacts!

bitcoin It has managed to reclaim the $21,000 level, making it one of the best performing assets of 2023, and a former SEC official claimed to know one of the key reasons driving BTC’s resurgence.

Former SEC Member John Reed Stark Claims Market Manipulation Is The Reason Bitcoin Rises

John Reed Stark, formerly a member of the US Securities and Exchange Commission (SEC), said that market manipulation played a large role in BTC’s recovery:

“The price of Bitcoin is rising for one reason: Market Manipulation. A new Forbes analysis of 157 crypto exchanges revealed that 51% of reported daily bitcoin trading volume was likely fake (and that was just the tip of the iceberg).”

Citing an analysis of 157 crypto exchanges by Forbes, Stark concluded that about half of the reported daily Bitcoin trading volume is likely fake.

Of course, BTC advocates opposed Stark’s claims.

In addition to this covert manipulation, some believe macroeconomic trends are behind this momentum of Bitcoin.

In a recent tweet, Galaxy Digital CEO Mike Novogratz offered two unconventional ideas as to why crypto is ‘rising’: the Bank of Japan’s rapid liquidation to markets and China’s blockchain and to cryptocurrencies backing away from regulatory sanctions.

Bitcoin’s price is rising for one reason: Market Manipulation. A recent Forbes analysis of 157 crypto exchanges found that 51% of daily bitcoin trading volume being reported was likely bogus (and that was the tip of the iceberg). David Gerard explains: https://t.co/0j3MBw4u6N

— John Reed Stark (@JohnReedStark) January 14, 2023

According to Novogratz, this is “a topic to watch in 2023”.

It is not yet clear what impact such factors will have on Bitcoin’s future course, but the issue does not seem to be closed yet.

However, the BTC price is about 70% below the record level it reached in November 2021.

*Not investment advice.