Cryptocurrency Market Manipulation Logic?
Cryptocurrency Market Manipulation Logic?
As I am involved in the crypto world for the past 3-5 years and closely watching BTC when its price was around $400 – $700. When the BTC first pumped in 2017/2018 than it creates chaos in the whole world and more and more users are attracted because of the profit they see, but when the price suddenly down and BTC dumped to $5000 from $20k then a lot of new as well as experience users lost their money and also trust from Cryptocurrency.
Recently BTC again pumped and the price reached $60k and was predicted to touch the target of $100k but again the BTC price dumped around $35k – $38k. From all this pump and dumped I did not yet UNDERSTAND that why and how this happens and the difference is huge. BTC is considered the king of the crypto world and it causes the price Pump and Dumped of all the coins. Also Crypto market is untrustable as any person having a status/huge bank balance can easily manipulate the market as Elon Musk did.
Any expert can explain the reason behind those huge pump and dumped of BTC?
The financial markets are hardly “explainable”. In order to properly describe each market move you would need to know the plans and strategies of most of the market participants which is impossible unless you have a crystal ball or you’re a extremely experienced mind reader who can handle the thoughts of millions of people at once.
Some investor might have felt anxious or fearful and dumped all his bags who knows, or Elon Musk might be playing games with Tesla’s or his own portfolio and doesn’t care about market impact. My point is that you can’t know the intentions of people who are selling or buying at any point in time, thus you can’t explain dumps or pumps.
IMO the healthy way to think about it is “there were more buyers than sellers” or “there were more sellers than buyers”.