Who is the Market Maker? Who is manipulating the market?

In the Cryptocurrency market, the term “Market Makerdealer” usually refers to those investors or institutions with huge capital and resources, who are able to significantly influence market prices through large buy and sell operations. However, who the real Market Makerdealer is remains a highly complex and difficult-to-determine issue.

1. Large institutions and Hedging funds

Some well-known large Financial Institutions and Hedging funds are considered the main players in the encryption market. They have huge capital and advanced trading technology, allowing them to move funds quickly in the market and conduct large-scale buying and selling operations. These institutions often have a significant impact on market prices in a short period of time through algorithmic trading and high-frequency trading strategies.

2. CryptocurrencyWhale

The so-called “Whale” refers to individuals or entities holding a large amount of Cryptocurrency. These Whales are usually investors who have accumulated a large amount of BTC or other Cryptocurrency at low prices in the early stages. Their large one-time trades can trigger drastic market Fluctuation.

3. Cryptocurrency exchange

Some exchanges may also act as market manipulators. By mastering a large amount of market data and order flow, these exchanges are able to observe market trends and may influence market prices through proprietary trading.

Market Manipulation Techniques

1. Whipsaw

Whipsaw is a market maker causing panic in the market by dumping a large amount of assets, leading to a rapid price drop and forcing retail investors to sell at a low price. Then the market maker accumulates again in a lower price range. This process is usually accompanied by high trading volume and intense fluctuation.

2. Pump and Dump

After the Accumulation is completed, the dealer will buy a large amount to push up the price and attract more followers to get on board. When the price reaches the expected target, the dealer starts to sell in batches to maximize profits. This process is usually accompanied by optimistic market sentiment and a large number of buy orders.

Bottom Accumulation Strategy

1. 分批Build a Position

The dealer does not buy a large amount of assets at once, but buys them in batches at different price ranges to avoid market detection and drastic price fluctuations. This allows for a steady accumulation of sufficient chips over a longer period of time.

2. Create fakeout

The dealer may create some fakeouts to lure retail investors to buy or sell. In this way, they can further clean up the floating chips and ensure that they absorb more chips at a low position.

3. Manipulating Market Sentiment

Dealers will use news, rumors, and market analysis reports to influence market sentiment. For example, releasing Favourable Information messages to boost prices, or releasing Unfavourable Information messages to suppress prices. The release of these information is often highly consistent with the intentions of the dealer.

How to Deal with Market Manipulation

As a Reverse investor, understanding the market manipulation techniques and the operation strategies of market maker is key to formulating effective investment strategies.

1. Stay calm

Avoid being influenced by market sentiment, especially during major fluctuations. Analyze market trends calmly and look for reasonable buying and selling opportunities.

2. Technical Analysis

Use the Technical Analysis tool to identify potential support and resistance levels, observe changes in Trading Volume and PA, and judge the dealer’s operational intent.

3. Information Identification

follow market information, but have the ability to discern and avoid blindly following the trend. Especially for sudden Favourable Information or Unfavourable Information messages, they should be treated with caution.

followReverse investors, understanding these techniques and market dynamics, staying calm and rational, can seize investment opportunities in severe fluctuations and achieve long-term stable returns.