Bitcoin soared to $94,000 in two hours: $68 million swept away by manipulation controversy, has it been "liquidity hunting"?

During the US trading session on Tuesday, the price of Bitcoin rose sharply from about $91,000 to more than $94,000 in two hours, an unusual trend that attracted strong attention from the market. The lack of clear positive news has led some traders to point out that this is “textbook manipulation”, while others believe there are real macro catalysts behind it.

Multiple on-chain analysts noted a rare period of large-scale concentrated buying during the price surge. DeFiTracer data shows that market maker Wintermute bought about $68 million in Bitcoin within an hour, while simultaneous buying orders from multiple major exchanges were also seen as a “synergistic push” by some researchers. Trader NoLimitGains noted that this rally is characterized by typical manipulation: extremely thin order books, large market orders pouring in in a short period of time, and a lack of subsequent structured buying. He believes that “a real bull market builds structure, and artificial push only leaves traps.”

This extreme volatility led to the liquidation of a large number of positions on both sides of the long and short sides. According to trader Orbion, the amount of long positions closed on the day was about $70 million, and the amount of short positions closed was about $61 million, which is a typical “liquidity hunting” market: the price is quickly pushed up to trigger the short liquidation, and the subsequent volatility kills the overleveraged longs.

However, there are also different voices. On-chain analyst Darkfost noted that the release of U.S. employment data could be the key driver. JOLTS job openings reached 7.67 million in October, significantly higher than expected; ADP employment data also showed a pick-up. He emphasized that Bitcoin’s rise of about 4% immediately after the data release, coupled with market bets that the Fed will maintain dovish expectations ahead of the FOMC, could bring real demand to risk assets.

As of 11:30 UTC, Bitcoin has fallen back from its high to around $92,500. The debate over “manipulation” and “fundamentals-driven” continues, and this incident once again highlights the current characteristics of fragile market liquidity, high leverage levels, and easy amplification of emotions, which is of great reference significance for investors who pay attention to Bitcoin price fluctuations. （BeinCrypto）