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- Bitcoin has shown increased volatility in recent weeks.
- The asset has started the new month in a similar fashion.
- Traders now speculate that Bitcoinâs price is being manipulated.
Bitcoinâs price has shown significant volatility recently, bouncing between $27,000 and $30,000. Last week, the assetâs price reached above $30,000, only to wipe out its 24-hour gains within an hour.
The asset is off to a rough start in May, seemingly continuing the trend. After closing above $29,000 for the last three days, Bitcoin is trading for $28,617.71 at the time of writing, per CoinGecko data. It represents a 2.3% drop in value over the last 24 hours. Amid the growing uncertainty, some traders now speculate that the price is being manipulated.
Price Manipulation?
Bitcoinâs recent pattern of running up to $30,000 only to violently dump afterward is beginning to raise eyebrows. Prominent crypto trader âAlgod,â @AlgodTrading on Twitter, argued that the current uncertainty in the banking sector ought to be perfect for Bitcoin, questioning why it appeared that Bitcoin was not receiving significant inflows.
In a tweet on Monday, May 1, âDuo Nine,â @DU09BTC, another respected crypto trader, alleged that the price is being manipulated.Â
"Not sure who's manipulating the price, but at this point it's quite obvious," he tweeted. "Pump the price, get FOMO to buy, unload bags."
Duo Nine urged traders to remain cautious till the current cycle ends.
Duo Nine is not alone in this thinking, as North Rock Digital Founder Hal Press described Bitcoinâs latest price action as âbait,â adding, âthis wasnât the first bait and is unlikely to be the last.â
In a tweet on Sunday, April 30, the former Morgan Stanley associate urged investors to remain patient and exercise discipline. According to Press, the markets would likely continue to tease bulls as âimpactful regulatory action and significant price inelastic selling are occurring simultaneously.â
WhaleTrades, @WhaleTrades on Twitter, has reported over $29.6 million in Bitcoin shorts across Bybit and BitMEX in the last 24 hours. In the latest instance, one whale reportedly dumped $3.6 million worth of Bitcoin on Bybit.
On the FlipsideÂ
- The Fed is set to make a rate hike decision this week, which could lead to increased volatility.
- Bitcoin market sentiment remains strongly positive, as reported by the Bitcoin Fear and Greed Index on Monday, May 1.
Why You Should Care
Bitcoinâs price movements often dictate the direction of the general crypto market and can result in significant gains or losses. Last weekâs volatility saw short and long traders record substantial losses.
Read this to learn more about Bitcoinâs wild price swings:
Bitcoin Investors Grasping for Answers After Wild Bounce Between $27K and $30K
Learn about Taiwanâs push for crypto regulations:
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