Bearish Cycle Looms for Bitcoin as Analyst Raises Red Flags on Market Manipulation

A market analyst has raised concerns about Bitcoin's price manipulation, alleging that market makers and exchanges are manipulating prices through futures and derivatives. Historical data shows that spot market activities drove price movements, but today's landscape is different. The analyst notes that undisclosed exchanges can manipulate market movements using leverage and bypass tangible Bitcoin. Despite challenges, he believes spot demand is building, ETFs are absorbing coins, and long-term holders are not selling, creating an "illusion of weakness."

Bitcoin's price has been a subject of scrutiny and debate among market analysts, with recent concerns raised about potential price manipulation. A market analyst has expressed worries that market makers and exchanges are manipulating prices through futures and derivatives, which could be leading to artificial price movements. According to the analyst, the current market landscape is different from historical spot market activities, where price movements were primarily driven by tangible Bitcoin transactions.

The analyst points out that undisclosed exchanges can manipulate market movements using leverage and bypass tangible Bitcoin, creating an environment where price manipulation is possible. Despite these challenges, the analyst believes that spot demand is building, and Bitcoin ETFs are absorbing coins, which could be creating an "illusion of weakness."

Arthur Hayes, a co-founder of BitMEX, has predicted that by the end of 2025, the price of Bitcoin might rise to $200,000, driven by the repurchase of U.S. Treasury bonds. He believes that the U.S. government's potential bond repurchase plan will inject new liquidity into the economy, redirecting investors' funds to higher-risk assets such as Bitcoin Arthur Hayes: Bitcoin Price Could Reach $200,000 by 2025, $1 Million by 2028^[1].

Meanwhile, the Bitcoin ETF market has seen strong inflows, with US-listed ETFs registering $642 million in inflows on Friday, the fifth straight day of gains. This pushed cumulative net inflows to nearly $57 billion, with total net assets at $153 billion Bitcoin Price Analysis: BTC Dips Below $115,000 As Whale Begins Dumping Holdings Again^[2].

Alex Thorn, head of research at Galaxy Digital, believes the US government will create a strategic Bitcoin reserve by the end of the year. He stated that the market is underpricing the likelihood of such an announcement Bitcoin Price Analysis: BTC Dips Below $115,000 As Whale Begins Dumping Holdings Again^[2].

However, not everyone shares Thorn's optimism. Dave Weisburger, former chairman of CoinRoute, predicts that a strategic Bitcoin reserve will only come to fruition in 2026 Bitcoin Price Analysis: BTC Dips Below $115,000 As Whale Begins Dumping Holdings Again^[2].

In conclusion, while there are concerns about potential price manipulation, the Bitcoin market continues to show signs of growth and resilience. The interplay between government policies, ETF inflows, and strategic reserves is likely to shape the future of Bitcoin's price dynamics.