Bitcoin Plunge Raises New Whale Manipulation Concerns

Bitcoin wavers approaching Jackson Hole. On Wednesday, August 21, the asset dropped sharply, reaching a 17-day low. This sudden decline rekindles suspicions of manipulation, as some analysts point to strange liquidity movements in order books, evoking the shadow of whales. Others urge caution, recalling that the nervousness could also come from macroeconomic uncertainty, as the highly anticipated speech by Jerome Powell, Fed chairman, looms on the horizon.

Suspicions About the Order Books : Return of Subtle Manipulation?

The recent drop of bitcoin to its lowest in 17 days, recorded at the Wall Street opening on Wednesday, August 21, was marked by heavy liquidity absorption on major trading platforms.

While bitcoin briefly regained this level early in the day, it quickly fell again, raising concerns about potential market manipulation.

Trader Daan Crypto Trades indicated that “bitcoin absorbed a large amount of liquidity on both sides over the past six weeks, as it ranged around the same price zone”, pointing to instability in the current area.

According to him, two key levels deserve particular attention : “the largest liquidity cluster is around 120K” while “the local range low at 112K remains active”. These zones can act, in his words, as “turnaround zones or magnets when the price approaches”.

In this context, Keith Alan, co-founder of Material Indicators, revealed several elements that, according to him, could signal an order book manipulation strategy. He mentions the reappearance of entities he nicknames “Spoofy the Whale” and “The Notorious B.I.D.” (the famous ghost bidder), known for their ability to artificially influence market movements.

Here are the main points noted by Alan :

• A bid liquidity concentration that moved lower in the order book, with a notable block at $105,000 which he describes as a “protection mechanism against the drop” ;

• A bid placement strategy likely to deliberately trigger a price drop, creating the illusion of lower support ;

• An influence on price direction which, even if not yet formally proven, produces real effects on the market ;

• The absence of direct proof, but a repetitive behavior pattern, which calls for vigilance from investors and analysts.

“Lower buy orders encourage the price to fall”, concludes Alan, while specifying that it is still “too early to draw definitive conclusions”.

Nevertheless, this type of signal reactivates recurring criticisms about the opacity of the crypto market and the persistent dominance of a few players over strategic liquidity zones.

A Natural Correction or a Cycle Pause ? More Nuanced Voices in the Analysis

In response to this accusatory interpretation, some analysts take a more nuanced view of the situation. TheKingfisher, another active observer on the social network X, warns of a risk of prolonged bitcoin decline, while emphasizing that the altcoins market is in a balanced position.

“Altcoins currently show a balanced distribution. We might witness a slight pullback aimed at liquidating high-leverage short positions”, he writes, while mentioning the possibility of a “slow erosion, spreading block by block”.

This perspective suggests a more technical than manipulated dynamic, where the domino effect of liquidations naturally amplifies price movements without malicious intervention needed.

More optimistically, analyst Rekt Capital places this decline in a historical perspective. He notes that similar pullbacks, occurring at the same moments in the 2017 and 2021 cycles, preceded bullish recoveries to new highs. This observation puts the scale of the current correction into perspective, integrating it into a cyclical logic specific to the crypto market.

Market attention now turns to the week’s major macroeconomic event: the annual Jackson Hole symposium, where Fed chairman Jerome Powell is expected to deliver a highly anticipated speech. Markets currently anticipate with an 80 to 95 % probability a 25-basis point cut at the September 17 FOMC meeting.

The tone of the speech could strongly influence rate expectations and, by extension, risk-taking in crypto markets. In this context, the recent bitcoin price drop could also reflect investors’ cautious waiting strategy regarding monetary policy signals, more than a coordinated behind-the-scenes maneuver.