Market Moves: Are Bitcoin, Ethereum, and XRP Prices Shaped by Manipulation?

Bitcoin surged by $1,400 within just one hour, crossing the $78,000 mark and boosting its market capitalization by $30 billion, while triggering $25 million in liquidations for short positions.

However, within a mere 15 minutes, it reversed all of those gains. An additional $15 million worth of long positions were liquidated during this downward movement. In total, over a span of 75 minutes, the net price change stood at zero, leaving traders on both sides of the market devastated.

“There’s an extraordinary level of manipulation occurring in the crypto space,” noted Bull Theory on X while observing these market fluctuations in real-time.

Traders Are Upset Over Repeated Patterns

A sudden price spike eliminates short positions, followed by an immediate drop that liquidates long positions. This cycle results in a transfer of wealth from leveraged retail traders to those aligned against them in both scenarios.

This behavior is prevalent enough in crypto markets that seasoned traders refer to it as a stop hunt. The market moves sufficiently in one direction to trigger wave after wave of liquidations, only to swiftly reverse and take advantage of the other side.

In the last 24 hours, Bitcoin witnessed $70 million in total liquidations, marking a 51.4% spike from the previous period. The derivatives market appears to be influenced by leveraged structures rather than genuine price discovery, favoring those with enough capital to navigate through significant liquidation thresholds.

Underlying Causes of Market Weakness

Several factors may be contributing to the market decline. The sudden passing of Ondo Finance founder Nathan Allman on May 26 caused a 5.65% drop in the leading RWA token, instigating anxiety across the industry.

The correlation between the crypto market and the S&P 500 is currently at 74%. This indicates a macroeconomic shift amplified by leverage, rather than a specific crypto-related incident. Persisting US-Iran tensions, high oil prices, and global pressure on risk assets are also at play.

One Notable Buyer Defying the Trend

While retail investors continue to panic sell, BitMine acquired 111,942 $ETH in just one week, boosting their total holdings to 5,390,404 $ETH—making up 4.47% of Ethereum’s complete circulating supply. Chairman Tom Lee described Ethereum’s fall below $2,200 as an enticing chance to invest.

Key Levels to Watch

The total market capitalization of $2.53 trillion is the immediate support level. A drop below this point could lead towards the 200-day moving average, which is situated around $2.72 trillion. For Bitcoin, maintaining a price above $77,000 is critical to keep the near-term structure intact.