Originally published on: September 30, 2024
In the world of cryptocurrency, rumors and conspiracy theories run rampant, often leaving retail traders susceptible to misinformation if not armed with market knowledge. Recently, reputable analysts in the crypto market identified a supposed “Binance manipulator” believed to have triggered Bitcoin’s price decline and subsequent support level retest.
Despite the existence of large offers and trades, there are several reasons why the theory of a manipulative entity suppressing Bitcoin’s price falls short of concrete evidence. One factor to consider is the potential use of multiple accounts for trading purposes, common among large trading desks for arbitrage and long-term investments, both legal and acknowledged in traditional asset management.
Moreover, the tactic of spoofing, where apparent large sell offers create fear and doubt in the market while prompting stealthy buying, adds a layer of complexity to the situation. The increase in Binance’s open interest further supports the theory that the entity accused of manipulation may actually be a net buyer of derivative contracts.
Amidst conflicting data showing competing large entities in Bitcoin futures trading, the unpredictability of the market due to various external factors like global economic news and profit-taking behavior among investors comes into play. Contrary to the manipulator theory, the execution of market orders at specified time intervals suggests a common institutional trading strategy known as TWAP, aiming to minimize price impact rather than manipulate prices.
Ultimately, while the true intentions behind these entities remain unknown, the available data points towards legitimate market activities rather than malicious manipulation. The notion of a “Binance manipulator” may not hold water in light of these insights, highlighting the complexities and nuances of cryptocurrency trading in a volatile market environment.
Disclaimer: This article serves as general information and should not be construed as legal or investment advice. The views expressed are solely those of the author and do not necessarily represent those of Cointelegraph or its affiliates.
