Bitcoin is down to at six-week lows

One more negative thing happened today for the cryptocurrency market. Bloomberg reports that the United States Department of Justice has initiated a criminal investigation into possible manipulation of market prices on Bitcoin cryptocurrency market.

It is reported that the United States Department of Justice (DOJ) is working with the Commission on Commodity and Futures Trading (CFTC), the main US market regulator, to focus on investigating illegal trading activities in cryptocurrency markets. In particular, we are talking about the so-called "spoofing", a kind of market manipulation, when traders introduce a flood of false orders into the market to deceive other market participants about the majority's intentions, and also attract new traders to the market. While the investigation is at the initial stage there is no more information regarding the issue. The stage of collecting information and studying the cryptocurrency markets will surely take some time.

It is interesting that the news about investigations coincided with another decline in prices for Bitcoin. Today, the price of the main digital currency broke through support at $7700 and the market moved down to a new 6-week local minimum around $7236. After that, there was a local pullback and market gained to the $7490 area. The market capitalization continued its decline and today it was around 332 billion dollars.

FortFS