Bitcoin News Today: Crypto Market Shaken by Whale Bets, DEX Manipulation Fears

A major whale has opened a substantial long position in Bitcoin amid a turbulent crypto market, signaling renewed speculative activity despite broader bearish trends. The move comes as decentralized exchanges and memecoin markets face scrutiny over alleged manipulation, with Solana-based tokens like Popcat experiencing extreme volatility. Meanwhile, Bitcoin's price action suggests a potential rebound, though institutional outflows and whale selling pressure continue to weigh on sentiment.

The crypto market has been roiled by a high-profile incident on Hyperliquid, a decentralized exchange (DEX), where a trader allegedly manipulated the price of Solana memecoin Popcat. On Nov. 12, Popcat's trading volume surged 500% as a $3 million USDC deposit was funneled into $20 million worth of long positions across 19 wallets. The trader's aggressive buying created a temporary price spike, but the position was swiftly liquidated as Popcat's price collapsed, wiping out a $21 million whale position - the largest single liquidation outside Bitcoin and Ethereum markets that day. Hyperliquid temporarily paused Arbitrum-based deposits and withdrawals to address the incident, with the community-owned vault losing $4.9 million in the process.

The Popcat episode has reignited debates about market integrity on decentralized platforms. Blockchain researcher Conor Grogan noted that Hyperliquid's manual intervention to close the position highlighted vulnerabilities in its design, drawing comparisons to a March incident involving Solana memecoin JELLYJELLY. Critics argue that such events expose gaps in decentralization, as centralized-like controls are sometimes necessary to mitigate abuse.

Against this backdrop, Bitcoin's price action has sparked cautious optimism. Technical analysts point to a "bullish falling wedge" pattern as BTC rebounds from a recent low of $106,000, with a potential breakout above $107,000 signaling a path toward $126,000. However, on-chain data reveals deepening bearish conditions: over 88% of open positions are long bets, and long-term holders have sold 815,000 BTC in the past 30 days - the highest level since early 2024. The Fear and Greed Index hit 16, nearing extreme fear levels last seen in March, as institutional and retail demand wanes.

Bitcoin ETFs have exacerbated the selloff, with $870 million in outflows reported on Thursday - the second-largest single-day withdrawal since their launch. Grayscale's GBTC led the exodus with $318 million in outflows, while BlackRock's IBIT and Fidelity's FBTC also saw significant redemptions. Analysts attribute the flight to year-end tax strategies, a strong U.S. dollar, and broader risk-off sentiment.

Despite these headwinds, some see a potential rebound. Fidelity's Chris Kuiper suggests that if whale selling eases and liquidity improves post-U.S. government shutdown resolution, Bitcoin could stage a late-Q4 recovery. The 365-day moving average at $102,000 remains a critical support level; breaking below it could trigger a deeper correction.

The market's fragility underscores the interconnectedness of crypto assets. Popcat's collapse and Hyperliquid's intervention have spooked investors, while Bitcoin's capitulation metrics highlight structural selling pressures. Yet, historical patterns - particularly Bitcoin's seasonal strength in Q4 - offer a glimmer of hope for a reversal, provided liquidity improves and manipulation risks abate.