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Bitcoin Price Manipulation Allegations Emerge Amid Liquidity Concerns

Bitcoin Price Manipulation Allegations Emerge Amid Liquidity Concerns

Cryptocurrency

Allegations of Bitcoin price manipulation have surfaced on social media, with traders pointing to liquidity tactics, exchange activity, and stalled BTC momentum.

A crypto analyst has stirred controversy with claims of Bitcoin price manipulation. The discussion began when NoLimitGains posted detailed allegations online, asserting that the recent Bitcoin price activity was orchestrated rather than organic, suggesting a coordinated liquidity operation.

Exchanges Allegedly Implicated in Bitcoin Price Movement

The post alleged that major exchanges, including Binance, Coinbase, and Wintermute, engaged in a deliberate pump-and-dump strategy. NoLimitGains noted that Bitcoin was previously in an area with significant short interest, negative funding rates, and high open interest, with stop losses clustered above resistance levels.

The analyst explained that major players aggressively drove prices higher into areas of thin liquidity, not for continued upside, but to trigger the liquidation of short positions. As prices surged, shorts were forced to cover, adding to the buying pressure and creating the appearance of a legitimate breakout.

Retail Traders Allegedly Affected by Coordinated Activity

NoLimitGains claimed that while retail traders pursued rising prices, the entities that initiated the surge were selling off their positions. Large transfers reportedly hit exchanges post-spike, and once short liquidations concluded, buying interest waned, causing prices to fall swiftly. The analyst characterized this as coordinated behavior by entities managing both liquidity and execution, labeling it illegal but noting a lack of enforcement.

Meanwhile, analyst Daan Crypto Trades offered a different view, indicating that Bitcoin's yearly liquidation heatmap revealed no notable levels. His analysis suggested that Bitcoin's price has been largely stagnant this year, with major clusters cleared over the past six months.

Daan noted that it will take time for larger clusters to form again, as price either ranges or makes significant high-volume moves.

Bitcoin is currently trading at $87,536.58, according to CoinGecko. The price has decreased by 0.25% in the last 24 hours and dropped 2.47% over the past week. Trading volume reached $50.5 billion during the same period.

The allegations have yet to be confirmed by exchange representatives or regulatory bodies.

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