KEY POINTS
- Bitcoin slumped below $65,000 on Tuesday night
- One prominent trader said there was a lot of 'spoofing' Tuesday
- Another industry expert said the price scenario is 'fairly typical' following the halving
Cryptocurrency prices have once again demonstrated their volatility as Bitcoin, the world's largest digital asset by market value, plummeted to $64,000 late Tuesday. Talks have since increased regarding the reasons why BTC has been struggling to reach its mid-March all-time high of $73,000.
On X (formerly Twitter), some crypto traders and observers shared their insights on Bitcoin's stubborn ascent despite some significant developments in the industry, with a growing number of Bitcoin holders suggesting there may be manipulation.
Prominent trader @DaanCrypto wrote there was a lot of "spoofing" around Bitcoin on Tuesday. Spoofing, a term in trading that refers to placing fake market orders in an attempt to manipulate an asset's price, is "illegal in regulated markets," he pointed out. He explained that the yellow bars in a chart he posted showed the huge orders that were added and then removed shortly after, "usually with the intention to drive price up/down."
#Bitcoin Lots of spoofing going on today.
— Daan Crypto Trades (@DaanCrypto) June 18, 2024
All those yellow bars are big orders that are being added & removed shortly after. Usually with the intention to drive price up/down.
Fun fact: Spoofing is something that's illegal in regulated markets. pic.twitter.com/BKjOW4WShb
Another trader who goes by @BritishHodl questioned why BTC prices are plummeting "while the miners" are seeing a spike. "There is blatant manipulation OR selling that institutions are not taking seriously going on in this market," he said.
One crypto user said "big banks" now have control over the digital currency's price, and another said history has shown how assets can be "purposefully held down" using enough capital before the assets' prices explode.
As of late Tuesday, BTC prices were trading at around $65,400 and $65,600. However, it hit the low end of $64,000 at one point Tuesday night. The asset, which declined 2.8% in the past week, isn't the only major cryptocurrency that has seen red in the last seven days.
Dogecoin (DOGE), the top memecoin in the market, is down by 8.6%, Cardano (ADA) declined by 7.0%, another popular memecoin, Shiba Inu (SHIB), is down by 13.4%, Avalanche (AVAX) declined by 14.1% in the past week along with several other coins in CoinGecko's Top 20 rankings.
Despite the increasing concerns about Bitcoin prices possibly being manipulated, some observers remain optimistic that better days are coming.
What we're currently witnessing in terms of Bitcoin price action is fairly typical around the actual halving:
— Julien Bittel, CFA (@BittelJulien) June 18, 2024
A big pump leading into the halving, followed by a brief but sharp correction, a period of sideways chop, a final dump to nuke any remaining bullish sentiment, another… pic.twitter.com/n25WWI1fYp
Julien Bittel, head of research at Global Macro Investor (GMI), said patience is necessary at this point in the digital coin's journey. He explained that the price downturn is "fairly typical around the actual halving." BTC went through a halving – wherein Bitcoin rewards for miners were cut in half – on April 20. For Bittle, it's "the boring zone before the banana zone."
