Bitcoin surged from around 91,000 $ to over 94,000 $ in just two hours during trading hours in the United States on Tuesday, a move that caught many traders by surprise. While some celebrated the sudden rally, others are raising alarm bells, calling it a classic case of market manipulation.
One of the most obvious concerns is the lack of a true fundamental catalyst.
No catalyst on the horizon, yet millions flowed in within minutes.
Crypto trader Vivek Sen noted that there have been no important news or announcements to justify the sudden price movement. The absence of an obvious catalyst fueled speculation that the rise may have been potentially orchestrated rather than natural.
On-chain analysts quickly identified unusual trading patterns. According to researcher DeFiTracer, market maker Wintermute purchased Bitcoin for 68 million dollars in one hour during the peak. Another analyst, DefiWimar, stated that several notable operators, including Coinbase, BitMEX, and Binance, made significant and coordinated purchases, describing the activity as a case of coordinated manipulation.
Experienced trader NoLimitGains explained in detail why the movement appears artificial. He highlighted several warning signs: thin order books that made it cheap to push prices up, large market purchases concentrated in a few minutes, and a total lack of continuity after the initial spike. He argued that true bull runs build structure, while manipulated ones only create traps.
Traders on both sides liquidated, a classic signal of liquidity hunting.
Perhaps the most convincing argument concerns what traders call 'liquidity hunting.' This is a strategy where large operators deliberately push prices up to trigger forced liquidations.
When traders open leveraged positions, they set liquidation levels where their positions automatically close if the market moves against them. These liquidation levels cluster at predictable price points, creating 'liquidity' pools that more sophisticated players can hit. By sharply pushing the price of Bitcoin up, large operators can trigger a cascade of short liquidations, forcing bearish traders to buy back their positions at unfavorable prices. These forced purchases further fuel the rally, allowing manipulators to sell on artificially inflated demand.
Trader Orbion highlighted this dynamic, noting that during the day there were long liquidations of 70 million dollars followed by short liquidations of 61 million dollars, with both factions swept away in a matter of hours.
NoLimitGains warned that historically these vertical spikes tend to be followed by violent retracements. With funding rates rising sharply and open interest growing rapidly, the warning signs were clear. He suggested that the scenario is typical of maneuvers by large operators preparing to sell on the enthusiasm of retail investors.
Not everyone is convinced that it was manipulation.
However, not all analysts share the manipulation thesis. On-chain analyst Darkfost pointed to the US employment data released during the same period as a possible real catalyst. The October JOLTS job openings data came in at 7.67 million—well above the expected 7 million—while the weekly ADP employment data returned positive after weeks of decline.
He noted that Bitcoin increased by about 4% immediately after the release of the data. With the upcoming FOMC meeting and a widely expected rate cut, Darkfost argued that the macro scenario offered favorable winds for risk assets, suggesting that the rally was driven by fundamental factors rather than improper maneuvers.
At 11:30 UTC, Bitcoin had retraced from its highs and was trading around 92,500 $.
