Bitcoin surged from approximately 91,000 USD to over 94,000 USD within just two hours during trading hours in the United States on Tuesday, an event that shocked many traders. While some celebrated the sudden spike, many others warned that what happened seemed like a clear example of market manipulation.
One of the most obvious concerns is the lack of fundamental factors driving the price.
There are still no clear factors, but millions in USD have flowed in within minutes.
Vivek Sen, the crypto trader, pointed out that there were no major news or announcements to explain this sudden price movement. The lack of clear catalysts has sparked speculation that this price move is more likely a setup than a market-driven movement.
On-chain analysts quickly detected unusual trading patterns. DeFiTracer, a DeFi researcher, reported that liquidity provider Wintermute purchased Bitcoin worth 68 million USD within just one hour during the rebound. Another analyst, DefiWimar, stated that several major players, including Coinbase, BitMEX, and Binance, collaborated in large purchases, indicating that this activity was price manipulation under a coordinated plan.
NoLimitGains, an experienced trader, detailed why this movement seems unnatural. He pointed to several warning signs, such as an extremely thin order book making it easy to push prices, large purchases occurring within minutes, and a lack of continued buying pressure after the prices went up. He confirmed that a genuine strong market price increase would create a stable structure, while price manipulation creates traps in the market.
Both sides of the trade were liquidated—classic LIQUIDITY hunting signals.
The most compelling argument may lie in what traders call 'liquidity hunting,' which is a strategy where large players intentionally push prices to trigger automatic position liquidations.
Whenever traders open positions using leverage, they set stop-loss points. If the market moves against them, the position will be closed automatically. These points tend to cluster around predictable prices, becoming a source of liquidity that technically savvy players can target. The aggressive push of Bitcoin's price upwards can induce a chain reaction of short position liquidations, forcing bearish traders to buy back at a disadvantageous price. When large forced buying occurs, it further drives the price up, allowing the manipulators to take profits during this artificially inflated price.
Trader Orbion highlighted this situation, noting that on that day, there was a liquidation of long orders worth 70 million USD, followed by the liquidation of short orders worth 61 million USD, with both sides being wiped out within a few hours.
NoLimitGains warned that statistically, rapid price surges often reverse sharply, with the skyrocketing funding rate and rapidly increasing open interest being clear warning signs. He also suggested that these overall conditions indicate that large players are planning to sell assets to retail investors during the market's excitement.
Not everyone believes it is price manipulation.
However, not all analysts agree with the price manipulation theory. On-chain analyst Darkfost pointed to U.S. employment data released around the same time as a genuine catalyst, with the October JOLTS job openings figure at 7.67 million, exceeding the expected 7.0 million, while the ADP weekly employment figures turned positive after several weeks of decline.
He stated that Bitcoin rose about 4% immediately after the data was released, with the upcoming FOMC meeting and most investors expecting interest rate cuts. Darkfost sees that the broader economic outlook supports risk assets strengthening and points out that this price increase could stem from genuine fundamental factors, not price manipulation.
At 11:30 UTC, the price of Bitcoin had softened from its peak and was trading around 92,500 USD.
