Bitcoin’s price has maintained stability in the $84,000 range despite mounting evidence of market manipulation by large-volume traders, commonly known as whales. The cryptocurrency briefly touched two-week highs of $87,500 on March 20 before retreating, with analysts identifying spoofing tactics—placing large sham orders—on exchanges like Binance as a key suppression mechanism. These whales have concentrated liquidity around the $89,000 mark, artificially capping upward momentum while testing critical support levels near $76,000.
The U.S. Department of Justice and Securities and Exchange Commission recently charged multiple market-making firms, including Gotbit Consulting and ZM Quant, with manipulating Bitcoin’s trading volume through wash trading and bot-driven strategies. Court filings revealed instances where manipulated BTC volume exceeded legitimate activity by 16x, underscoring systemic vulnerabilities. This regulatory crackdown follows President Trump’s March 7 executive order establishing a strategic Bitcoin reserve, which initially failed to catalyze sustained price gains beyond $85,000.
Economic pressures, including inflation concerns and rising interest rates, have compounded selling activity. Bitcoin shed 22% from its February 2025 peak of $99,000 as investors reduced exposure to volatile assets. Analysts note that while macroeconomic headwinds contribute to stagnation, whale-driven maneuvers exacerbate price choppiness. Material Indicators highlighted $84,000 as a critical threshold for traders, warning that failure to hold this level could trigger cascading liquidations. Crypto trader Daan Crypto Trades emphasized the importance of maintaining the $85,000 zone, where Bitcoin’s 200-day moving average converges with key trendlines. Traders are now weighing the Federal Reserve’s March 19 decision to hold rates steady against signs of renewed institutional interest, including a $275 million inflow into spot Bitcoin ETFs on March 17.
Sources:
Bitcoin Price Holds Steady Above $82,000 Ahead of FOMC Meeting
https://www.ainvest.com/news/bitcoin-price-capped-87-500-whale-manipulation-binance-2503
DoJ, SEC charge ‘crypto’ market makers with market manipulation
https://www.thestreet.com/crypto/markets/the-us-is-going-all-in-on-bitcoin-so-why-is-price-stalling
