In many of my articles, I’ve told you that the whole market is moving how the market makers or the whales tell it to move. At the first look, the whole market seems to be moving uncontrollably, there is no pattern or signs that can tell that someone pushes it in one direction or another if you don’t pay attention. But as I said earlier, there is someone who moves it. And this movement can be made without saying a word about a project or a coin. If you want an example of movement just check what Doge did when Elon Musk announced that he will buy Twitter. It had a big spike, from 0,1315$ to 0.1709$, and before that on the 7 of April Elon posted a tweet where he asked if there is necessary an edit button and Doge did the same spike, from 0,1487$ to 0.1796$. But why? Where is the connection between Twitter and Doge? Well, Elon is the connection. Many people thought that if Elon bought Twitter he would integrate Doge into Twitter so that’s why Doge had such movements but was just speculation. Those who love Doge so much hoped that at some point their favorite coin will finally have a utility and the others who speculate that move Elon did, just wanted to make a few bucks from that opportunity. Hey, I don’t say that at some point Elon will not integrate Doge into Twitter but honestly, there is no sense to do that, at least not with Doge. But who knows, we are talking about Elon Musk, there are plenty of possibilities. 

Ok, ok but Elon is not the only one that is manipulating the market, there are many others players who are doing that. And those players are the exchanges, usually the centralized ones. Maybe you are asking how is that possible, well it is possible because they know the data. They know where the trade positions are opened and also they know the trading volume. So it is not so hard for them to make money based on this knowledge. 

Another kind of market manipulator is those who have a big amount of liquidity. They can move the price just by selling that amount or a big part of it. At this point we can see a direction of what will happen, there will be a price drop, and paper hands will sell everything because they will be afraid to not lose all their money. After that the whales will buy at a lower price and in this way, they will gather more liquidity and also more power in the market. 

Last but not least in market manipulation is the average trader. How can that be possible? Well easy, by selling or buying a coin. This is happening because when a trader is opening an order it says that he will buy or sell if the price will touch a certain level. This will make the price go up or down, depending on how many orders of a kind are opened in the market. If there are more selling orders than buying orders then the price will go down, if there are more buying orders than selling orders then the price will go up. Also, this is the mechanism that gives the direction of the market. But of course that there are all of these three types of market makers that influence the direction of the market because they are influencing each other too. 

In the end, I wanted to say that I didn’t want to scare you or make you think that the whole market is made by some puppet masters. No, everything that I’ve told you here was just to make you aware that somebody is watching all the time in the market and it will try all the time to take advantage of the market moves. Also, there are other things that can influence the movement of the market, like governments or a big event in the world so there are not just these three factors that can change the direction of the market or a project. So before making a move in the market, and here I talk about all financial markets, please, do your own research, and try to be 90 percent sure that what you are doing there is to your advantage. 

 

#ThinkSMART

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Written by : Betuel Saracut

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