Topic: Cryptocurrency Market Manipulation Logic? - page 5. (Read 818 times)

Group of whales, traders and small investors, all of this affects the market of Bitcoin. That is not easy to predict because all of them have their own calendar time to when they will dump it.
When a small price drop happens, a panic could make it worse. When there's panic, a sudden domino effect could bring it down.
What Elon Musk did was a good example. He made a big ruckus about dumping all his Bitcoin but this doesn't mean it is just him who will do the same thing.
Different kind of investors and traders could sway at the same direction to take a small profit but there will be no record of when or how.

Not an expert here to give you detailed information how the market works.But did you invest when prices were at $400 and sell at say even $50k? The main manipulation is done by the whales who tries to create any FUD in the market and makes dump situation in the market to buy at dips.There main target are panic sellers and new traders in the market as they say "weak hands sold to strong ones".They cash out the profits by selling at peak and then accumulate more btc at less prices.The same case is with renowned influencer like Musk who took undue advantage of their position and try to move the market to their profits or say on anti-crypto bodies follow up just to dump a coin.The main reason is lack of awareness, greed,less patience among investors who listens to them and then suffer loss creating market crash and big players make profits out of their pockets.This is how this all is working.

I believe that an important reason for this process is that the price of Bitcoin cannot constantly grow and in order to continue its growth, the price of BTC falls. Yes, yes, big players artificially omit it. Moreover, such a strategy allows large players to regulate the price of Bitcoin as well as earn good money. As for 2021 and the fall in the price of BTC that we are now seeing. Probably in 2021 there will be a double increase in the price of BTC and the first phase of growth has already passed. Next, we are waiting for the formation of a bottom, this fall is a small flat and again growth, which is expected at the end of 2021

Like what's others saying crypto currency is about how people react and i agree with that. And honestly ever since before i don't see any events or news around the internet that didn't make an impact in the market, because it always make holder to panic selling wherein knowing it can cause loses and knowing as well it just a temporary situation and they all had a chance to recover if they will stay hodl. But sad to say it seems nothing when everytime there's a bad news that's why the crypto market always experience such reactions.

Manipulation happens both in cryptocurrency and the stock market. If you look closely and analyze the causation behind the stock pump, you would probably end up getting the same conclusion; manipulation. However, they are barely visible because they are executed following some techniques which look natural.
Cryptocurrency is certainly manipulated but the volatility is high for so many other factors. Since it's a global market where no time is fixed unlike the stock market, a piece of simple news can influence the market significantly. In stock, since there are off/on periods, news in the off-time can't affect huge most of the time while in crypto, the news can take effect regardless of time. That's the main reason behind the huge volatility.
Apart from that, a piece of news can affect the market a few times because of the European, American, Asian trading time difference while in stock, news can affect in a single time.

Elon Musk didn't manipulate the bank balance, instead, he used his influential power. Nevertheless, if anyone is found manipulating the market whether it is the stock market or crypto market, they are supposed to be punished according to the laws in that particular area. BTW, it's not only crypto market which one can manipulate, anyone with enough fund can manipulate the stock market too.

There's this common say that everybody is a good trader during the bullish market and that's the worst time for you to think you're good at trading. Same goes for the so called experts, the bullish market make them all look good and that's why there's usually an increase in their numbers during that period.

We have quite genuine youtubers out there that you can visit their channel to get information and updates concerning the cryptomarket but majority aren't genuine and that's why newbies are advice to absent from been a follower. Same could be said about the influencer, I see no reason why anyone will adhere to the advice given from some random individual online on how he/she should invest their money. That's a decision they should make for themselves and not look for shortcut or end up getting rekted at the end

Very well said.

Those newbies that have bought their preferred cryptocurrencies are now relying on the market through the media and the influential person that they're following.

Having that said, they've done a mistake that they shouldn't really rely on their decisions on any person even if it's an influential guy.

One thing we have to put into consideration before we understand how manipulation of the cryptocurency market occurs so easily is that majority of the investors in the space are newbie that have no prior knowledge to investing or just trying to achieve financial freedom in the quickest way possible.

With that in mind, you'll understand why emotions still has a major say in the industry. The idea is that if whales buying into the market can pump the market then them selling too will have same effect but this time, in the opposite direction. Therefore in order to secure profit or avoid further losses, the retail investors are forced to follow the short term directions of the market.

Huge volatility happens due to a multitude of reasons.

- At some point, bitcoin is still in its infancy stage where ountries finds it difficult to regulate due to its decentralized nature.
- It is being traded 24/7 at a global scale. This means that there are different factors such as big international exchange, big boys taking their advantage of the cycle, and trades based on market sentiment driven by FOMO and FUD.
- And any other reason that I have not included which could possibly affect the market be it political and technological aspects.

It's all about demand and supply. That's how the market works even if you check out stocks, forex, precious metals and commodities. You will always see "pumps" and "dumps"

Now for the case of crypto, the market is still very volatile, but the principle behind price movement is still the same. Don't be fooled into thinking people just invest in crypto for fun or to HODL forever. Most people are in the game to make profits, so eventually they will sell off at some point.

Nice image but the one I really like is the one picture with a lot of people,,, where one guy is asking someone, what he should buy? And someone else hears buy and shouts to buy and everyone else also shouts to buy and it becomes a frenzy, but somewhere else also someone asks about sell and same thing happens in a cycle:)

We are all targets, if we wish to trade, unfortunately we have to follow as targets:)

Those who bought want to take profit, maybe with media or maybe people who panic sell can cause price to be down too. I think it is nature of market because people who take right time to buy and sell will get profit. And who maybe made mistake can be lose like when they bought in peak and expect for the price to be higher. But that is only my personal opinion, my conclusion is it is reaction from people who take profit, who panic sell, and who maybe aim to buy again in cheaper price.

I'm not an expert but because they know the holders will eventually sell when the price is right, they all will sell and wait for the price to plummet to its very bottom so they could buy back for the cheapest price. And as a result, they get to have more coins if done right. This isn't a secret so when everyone also wants to have more BTC, they follow what has been done by the traders in the market. It doesn't just occur in crypto but in most markets.

I think the simplest logic is people are easy to fool by most influencers when it will create hype and of course, due to the demand and supply Bitcoin price will fluctuate because of its volatile nature.  People don't simply understand the real use of Bitcoin, they think if you have this, you will become rich too while thinking this during the price hike but not during the deep price in the market.

Another plus factor of manipulation is that because there are big institutional investors who are in the market now, do you think that those who invested worth millions or even billions of dollars won't sell their assets in the future?  They also considering as a whale too, we are happy that they invested that huge amount but the possible consequences ahead are waiting.

Bitcoin went from $20k to $3k. And try to understand that bitcoin is a decentralized cryptocurrency and there are a lot of markets that are trustless.

IMO, the logic that lies with the manipulation is that when big names got to sell, the market is panicking and small traders and investors are following that creates a wave with the market.

No expert behind this present situation that we're facing today, though we seen such pumps from previous market that doesn't mean it's going to be consistent. We also be precautious on different ideas that might occur someday. Market declination always made it more harder even if wealthy personalities like Elon Musk provided positive feedback on bitcoin and other coins.

They all play the same type of pump and dump games to shake the paper hands out while they start accumulating from the very bottom that they decide. Then after few years, they show some volumes, attract new customers, play the same manipulation on them, take away their money 'legally' and dump on those innocent new traders. This will go on till this market goes extinct.

Hi
I don't consider myself an expert but for sure but for sure the demand and supply works everywhere but here. The huge dump is definately due to people who have either a huge sum of money or if they are involved in groups where they try and influence the price altogether. See I feel like the whales work together. At the same time there are people like Elon Musk to influence the market. The not so rich people (mentally) generally follow whatever they say. Twitter and other social media apps are genuinely now a days a tool to make such changes. Plus when the price starts to fall it suddenly starts a chain reaction due to panic selling and it falls even further. Therefore at the end of the day it might be whales, influential people, governmental announcements , bans etc.. but at the end you cannot determine a single cause.

Simplest answer to this question is, whales wants to earn huge. They buy coins at a lower price then create hype and sell at a higher price. This is exactly what happened in BTC pumps and dumps. The guys who lose their money are retail investor who invested in the market to earn big in limited time. All this is connected to human psychology and emotions. And frankly speaking, we humans are very emotional.

No one would be able to point out the exact reason why pump and dump happens in the market. Considering the size of bitcoin market, it's pretty impossible for any single group or entity to manipulate the market. But since you are watching the crypto market since last few years, you know that people will book profit after it reaches to a price point. This price point differs from person to person.

Remember,  a lot of people invested in bitcoin at 22k level and when it went back to 4k level, everyone was disappointed. Now you can't get in at even 22k level. So patience is the key here. Market corrects after every ATH and that's what is happening now.