Bitcoin surges $3,000 in 2 hours, raising market manipulation concerns

Source: BlockMedia
Original Title: Bitcoin surges $3,000 in just 2 hours… Simultaneous long and short liquidations spark ‘manipulation’ controversy
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Bitcoin surged $3,000 in just two hours without any notable catalysts, sparking suspicions of market manipulation. As major market maker Wintermute executed large-scale purchases and both long and short positions were liquidated, some investors pointed to this as a classic case of ‘liquidity hunting(Liquidity Hunting)’.

On June 9, during U.S. trading hours, Bitcoin jumped nearly 4% from $91,000 to $94,000. Despite the significant price increase, there was a clear imbalance in trading volume and structure. The surge occurred within about two hours, and a reversal followed immediately after, raising concerns among investors about artificial price movements.

“No catalysts, only buying”… Possibility of manipulation raised

The market noted the absence of any clear news or data releases to support the spike. On-chain analyst DefiTracer pointed out that Wintermute purchased approximately $68 million worth of Bitcoin in a short period during this time frame. Another analyst, DefiWima, observed simultaneous large-scale purchases across major exchanges and raised the possibility of “intentional manipulation.”

Veteran trader NoLimitGains commented, “With a thin order book, large market buys easily pushed the price up,” adding, “A real rally forms a structure, but manipulated moves create ‘traps’.”

$130 million liquidated… Both long and short investors ‘wiped out’

There were also significant liquidations of both long and short positions during the surge. Trader Orbeon reported that $70 million in long positions and $61 million in short positions were liquidated within a single day. This aligns with analyses suggesting that large investors triggered short liquidations to fuel the rally, then reversed to liquidate longs.

NoLimitGains warned, “Such vertical price spikes are typically followed by sharp drops and corrections,” and analyzed, “With funding rates and open interest surging, the current situation may signal that major players are preparing to take profits from retail investors.”

Some argue “employment data was a bullish catalyst”

However, not all experts viewed the surge as manipulation. On-chain analyst DarkPost argued that U.S. employment data released at the same time could be a reasonable catalyst. In fact, October JOLTS job openings came in at 7.67 million, far exceeding market expectations(7 million), and the ADP employment report also showed a rebound from its recent downtrend.

DarkPost interpreted, “Such employment data can have a positive effect on risk assets overall,” and added, “With growing expectations of a Fed rate cut ahead of the upcoming FOMC meeting, Bitcoin may simply have responded to favorable macroeconomic news.”

Meanwhile, after the surge, Bitcoin reversed to a downtrend and is currently trading around the $92,500 mark.