2013 Bitcoin Bull Run Exposed: Fake Trading Activity on Mt. Gox

A significant event in Bitcoin's history has been revisited by researchers who have uncovered the truth behind the 2013 bull run. According to their findings, the unprecedented price surge from $150 to $1,242 was not due to genuine demand but rather fake trading activity on Mt. Gox.

The exchange's CEO, Mark Karpeles, is accused of using bots to create artificial demand and hide the fact that his exchange had already lost half a billion dollars and was technically insolvent. The researchers claim that the suspicious trading activity caused the spike in prices.

It is reported that the two bots, Markus and Willy, were used by Karpeles to generate fake buy orders. Markus was active from February 2013 until September, while Willy took over in September and continued until November. The bots accounted for 12% to 50% of total Bitcoin trading volume across all major exchanges combined.

The study's conclusion has significant implications for the cryptocurrency market, as it suggests that retail buyers who entered the market during this time were buying into a manufactured bubble.