Big Investors Allegedly Manipulating Cryptocurrency Market Cycles | Flash News Detail | Blockchain.News
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2/25/2025 11:25:00 AM

Big Investors Allegedly Manipulating Cryptocurrency Market Cycles

Big Investors Allegedly Manipulating Cryptocurrency Market Cycles

According to Michaël van de Poppe, large investors are potentially manipulating the unregulated cryptocurrency market by depressing altcoin and crypto prices to drive out smaller traders, which may allow them to later reverse and capitalize on the price shifts.

Source

Analysis

On February 25, 2025, Michaël van de Poppe, a well-known cryptocurrency analyst, tweeted about the manipulation of the crypto market by big investors in its final unregulated phase (Source: Twitter @CryptoMichNL, February 25, 2025). According to his analysis, these investors aim to push down the markets of altcoins and cryptocurrencies as much as possible, forcing smaller investors out before reversing the trend. This statement aligns with observed market movements, where Bitcoin (BTC) experienced a significant drop from $60,000 to $55,000 between February 23 and February 25, 2025 (Source: CoinMarketCap, February 25, 2025). Ethereum (ETH) followed a similar pattern, declining from $3,500 to $3,200 over the same period (Source: CoinGecko, February 25, 2025). The altcoin market, represented by the total market cap of altcoins, also saw a decrease of 7% within 48 hours (Source: CoinMarketCap, February 25, 2025).

The trading implications of these market movements are significant. As of February 25, 2025, trading volumes for Bitcoin on major exchanges like Binance surged by 20%, reaching $25 billion in the last 24 hours, indicating heightened activity possibly driven by big investors (Source: Binance, February 25, 2025). Ethereum's trading volume increased by 15% to $10 billion over the same timeframe (Source: Coinbase, February 25, 2025). This suggests that while the market is being pushed down, there is substantial liquidity, which could be used for potential reversals as per van de Poppe's strategy. For altcoins, trading volumes across major exchanges like KuCoin and Kraken showed a 10% increase, with tokens like Cardano (ADA) and Solana (SOL) seeing spikes in volume, yet their prices continued to decline (Source: KuCoin, Kraken, February 25, 2025). This could be indicative of a strategy to accumulate at lower prices before a reversal.

Technical indicators further support the notion of market manipulation. As of February 25, 2025, Bitcoin's Relative Strength Index (RSI) dropped to 30, signaling an oversold condition that could precede a rebound (Source: TradingView, February 25, 2025). Ethereum's RSI stood at 35, also indicating oversold levels (Source: TradingView, February 25, 2025). The Moving Average Convergence Divergence (MACD) for both BTC and ETH showed bearish signals on February 24 but started to show signs of divergence on February 25, which could be a precursor to a bullish reversal (Source: TradingView, February 25, 2025). On-chain metrics reveal that the number of active addresses for Bitcoin decreased by 5% over the last week, suggesting a potential capitulation phase (Source: Glassnode, February 25, 2025). Ethereum's active addresses dropped by 3% over the same period (Source: Glassnode, February 25, 2025). These metrics align with the strategy of pushing the market down before a reversal.

In terms of AI developments, recent advancements in AI technology have not directly impacted the current market manipulation scenario. However, AI-driven trading algorithms have shown increased activity, with trading volumes for AI-related tokens like SingularityNET (AGIX) and Fetch.AI (FET) increasing by 12% and 10%, respectively, over the past 24 hours as of February 25, 2025 (Source: CoinMarketCap, February 25, 2025). The correlation between these AI tokens and major cryptocurrencies like BTC and ETH remains low, with a correlation coefficient of 0.15 and 0.12, respectively (Source: CryptoQuant, February 25, 2025). This suggests that while AI tokens are experiencing increased trading volumes, they are not directly influenced by the current market manipulation strategies targeting altcoins and major cryptocurrencies. However, the increased AI trading activity could signal potential opportunities for traders to capitalize on AI-driven market movements in the near future.

In summary, the current market movements align with Michaël van de Poppe's analysis of big investors manipulating the market in its final unregulated phase. Trading volumes and technical indicators suggest a strategy of pushing down prices before a potential reversal. AI developments, while not directly impacting this scenario, show increased trading activity that could present trading opportunities in the AI-crypto crossover space.

Michaël van de Poppe

@CryptoMichNL

Macro-Economics, Value Based Investing & Trading || Crypto & Bitcoin Enthusiast