Bitcoin rose from about 91,000 USD to over 94,000 USD in just two hours during Tuesday's sessions in the USA. This move surprised many traders. Some celebrated the sudden rally. However, others warned that it was manipulation, calling this situation a textbook example of artificial market driving.
One of the most striking problems is the lack of any fundamental stimulus.
No catalyst, but within a few minutes, millions USD flowed in – pure manipulation?
Cryptocurrency trader Vivek Sen noted that no significant news or announcement appeared that could explain the dynamic rise in Bitcoin's price. The lack of an organic clear catalyst intensified speculation that the price movement of Bitcoin was manipulation.
Analysts analyzing the blockchain quickly detected unusual trading patterns. According to information from DeFiTracer researcher, the market maker Wintermute bought Bitcoins worth $68 million within one hour during the sudden spike. Another analyst, defiWimar, claimed that many large players, including Coinbase, BitMEX, and Binance, made significant, coordinated purchases, suspecting these actions as a form of deliberate manipulation.
Meanwhile, experienced trader NoLimitGains analyzed in detail why he considers this movement artificial. He pointed to several warning signs. The order book was shallow, allowing for easy price spikes. Massive buy orders executed within minutes and the lack of continuation after the initial rise. According to him, a true bullish movement builds structure, while manipulation creates traps.
Traders on both sides liquidated, which is a classic signal of liquidity hunting.
The strongest argument concerns the so-called 'liquidity hunting.' This is a manipulation strategy in which large players deliberately push the price to trigger forced liquidations.
Traders opening leveraged positions set liquidation levels at which their positions automatically close if the market moves against them. These levels concentrate around predictable points, creating what are known as liquidity pools. Meanwhile, experienced players may attack these levels for liquidity hunting.
The artificial price increase of Bitcoin allows large entities to initiate a series of short position liquidations. This forces bearish traders to buy back positions at unfavorable prices. In turn, such forced accumulation drives the rally, giving manipulators a chance to sell on 'artificially' increased demand.
Trader Orbion highlighted this correlation, noting that yesterday $70 million in long positions were liquidated, followed by $61 million in short positions. Both sides incurred significant losses within a few hours.
Furthermore, NoLimitGains warned that historically, such vertical movements tend to have sharp retracements. Funding rates are high, and open positions are growing rapidly. This is a clear warning for the market and traders planning further moves. NoLimitGains also suggests that large players are preparing to sell on the wave of enthusiasm from retail investors.
Not everyone is convinced that this was manipulation.
Not all analysts agree with the manipulation thesis. On-chain analyst Darkfost pointed to the employment data in the U.S. released at the same time as a real catalyst. The number of JOLTS job openings for October was 7.67 million, significantly exceeding forecasts (7 million), and the weekly ADP report reversed the downward trend.
Darkfost noted that Bitcoin gained about 4% shortly after the publication of this data. With the upcoming FOMC meeting and widespread expectations of interest rate cuts, Darkfost believes the macroeconomic environment favors risky assets. This may indicate that the rise was a result of fundamentals, not manipulation. However, as indicated by the Bitcoin price chart, at 11:30 UTC, BTX retraced from the daily peak and cost around $92,500.
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