HomeCryptoBillionaire Mark Impending Cuban Troubles “Implosion” Bitcoin and Cryptocurrency Alert
Billionaire Mark Impending Cuban Troubles “Implosion” Bitcoin and Cryptocurrency Alert
January 7, 2023
bitcoins and cryptocurrencies are still reeling after a brutal 2022 that saw a catastrophic $2 trillion sell-off, which could be about to get even worse.
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The price of bitcoin has fallen below $17,000, a level not seen in more than two years (although a tiny cryptocurrency has skyrocketed into the new year).
Now, billionaire investor and crypto-convert Mark Cuban has warned that the next bitcoin and cryptocurrency meltdown may already be looming, despite a former bitcoin billionaire predicting a massive rally due to an overlooked element.
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“I think the next possible implosion is the discovery and removal of laundering trades in the central exchanges,” Cuban said The street. “There are allegedly tens of millions of dollars in trading and liquidity for tokens that have very limited use. I don’t see how they can be that liquid.”
however, the Shark tank star, who said last month that he wants the price of bitcoin to keep falling so he can buy more, added that he has “no specifics to offer to support my hypothesis.”
Wash trading in cryptocurrencies involves artificially generating interest in a cryptocurrency through swap-based trades which could result in a price pump.
Last year, Forbes Analysis of more than 150 cryptocurrency exchanges worldwide found that 51% of the reported daily bitcoin trading volume is likely wash trading.
Up to 70% of cryptocurrency trading activity on many of the world’s largest bitcoin and cryptocurrency exchanges may be illicit, according to a December report from the National Bureau of Economic Research.
“These estimates translate into wash trading of more than $4.5 trillion in spot markets and more than $1.5 trillion in derivatives markets in the first quarter of 2020 alone,” the report authors wrote.
Recent research on wash trading in non-fungible tokens (NFTs) notably found that wash trading accounted for over half (58%) of the total NFT trading volumes on the ethereum blockchain in 2022, described by market observers as the “most overlooked issue” of cryptocurrencies.
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Meanwhile, bitcoin and cryptocurrency investors are hoping that an improving macroeconomic picture means an end to the brutal bear market of 2022.
“Under a bullish 2023 scenario, US inflation would fall as Fed monetary policy tightening peaks while the job market remains strong,” said Jack Tan, co-founder of trading platform Woo Network, in comments via e-mail.
“This means improved risk appetite for the cryptocurrency market. On the other hand, the bearish case would be for US inflation to remain sticky. While inflation data for October and November this year surprised on the downside, they are more evidence is needed to confirm a change, and there may still be uncertainty about inflation in 2023. There is a lag in the impact of Fed hikes on the real economy.”