• Bitcoin’s price has been showing increased volatility in recent weeks, with traders speculating that it is being manipulated.
• Last week, the asset’s price reached above $30,000, only to wipe out its 24-hour gains within an hour.
• Prominent crypto traders have argued that despite the uncertain banking sector, Bitcoin isn’t receiving significant inflows.
Bitcoin Showing Increased Volatility
Bitcoin has been showing increased volatility in recent weeks and started the new month in a similar fashion. The asset’s price has bounced between $27,000 and $30,000 and last week reached above $30,000 before wiping out its 24-hour gains within an hour. At the time of writing, per CoinGecko data, Bitcoin is trading for $28,617.71 which represents a 2.3% drop in value over the last 24 hours.
Speculation of Price Manipulation
This pattern of running up to $30,000 only to violently dump afterward has led some traders to speculate that the price is being manipulated. Prominent crypto trader “Algod” argued that banks are failing left and right yet there is still no new money flowing into Bitcoin which it should be made for this scenario. Another respected crypto trader “Duo Nine” tweeted that at this point it’s quite obvious someone is pumping the price then unloading bags while urging traders to remain cautious till the cycle ends. North Rock Digital Founder Hal Press described Bitcoin’s latest price action as “bait” adding this wasn’t the first bait and is unlikely to be the last one either.
Traders Call for Caution
With speculation of Bitcoin’s prices being manipulated by some unknown entity on the rise due to its patterns of running up and dumping down violently thereafter ,traders have called for caution against such activities . They urged traders not to fall prey for any kind of FOMO buying during such pumps since they are scams until this pattern changes .
Banking Sector Uncertainty & Crypto Inflows
The banking sector uncertainty ought to be perfect for Bitcoin but it appears not much new money is flowing into cryptocurrency due to lack of regulation and trust issues among investors . With more people now investing in digital assets , governments are also looking into regulations which could ensure safety against manipulation while allowing people access these markets easily .
In conclusion , with potential signs indicating manipulation of prices , traders seek caution before investing their hard earned money into cryptocurrencies like Bitcoin . It is important for investors not to fall prey from any kind FOMO (Fear Of Missing Out) buying during pumped prices as it may result in huge losses if dumped afterwards . Governments across countries should come together and work on regulations which would ensure safety against manipulation while still allowing easy access these markets .