Bitcoin’s Massive Drop Sparks Suspected ‘Manipulation’ Among Traders — What Actually Happened?

BTC-USD -6.63%

Key Takeaways

• The sudden plunge erased billions in market value and triggered heavy liquidations.

• Analysts pointed to the Bank of Japan’s signals of a possible December rate hike and the weakening yen.

• Bitcoin may retest support around $82,622 if the decline continues, analysts said.

Bitcoin tumbled 5% in a matter of hours on Sunday, igniting a wave of speculation among traders who say the scale and speed of the drop defy any clear macro trigger.

The sharp reversal, which pushed BTC below $86,000, erased more than $200 billion in market value and flushed out nearly $700 million in leveraged positions within a day.

Traders Claim “No Sense”

Crypto analyst and commentator Ash Crypto was among the loudest voices questioning the selloff’s origins, saying on X that the speed of the downturn lacked any plausible catalyst.

“Bitcoin dumped -$5,000 in 3 hours… and the craziest part? There wasn’t a single negative news today,” they wrote.

The remarks echoed a growing chorus of traders pointing to increasingly frequent high-velocity selloffs that appear disconnected from broader financial conditions.

However, many traders pushed back on the claims, citing several reasons why BTC is likely to topple.

“Why is every dump called manipulation, but similar pumps aren’t? Crypto has grown, but it is still a very volatile market,” one X user wrote.

Japan’s Role in the Bitcoin Drop

While traders dispute whether manipulation is to blame, analysts point to developments in Japan as a possible catalyst for the recent fall.

The Bank of Japan has signaled that a December rate hike is on the table, as the yen continues to weaken, with USDJPY approaching the 155–160 range, levels that have historically pressured the central bank to act.

“In short, the combination of a weakening Yen, rising inflation, and a suddenly more hawkish BOJ has rattled markets,” Victor Olanrewaju wrote on CCN.

Technical Breakdown Points Negative

The abrupt slide has also revived concerns about Bitcoin’s short-term market structure.

In a recent analysis for CCN, Victor Olanrewaju said crypto had “lost key structure” after crashing below $83,000 on Nov. 25, a move that signaled a potential shift into bearish territory.

After briefly recovering in an ascending channel toward $100,000 over the past ten days, Bitcoin’s renewed decline has now pushed it under the lower boundary of that channel.

This technical breakdown points to strengthening downside momentum, Olanrewaju said.

According to him, the 4-hour chart also shows a “sharp decline” in the Chaikin Money Flow indicator, a measure of buying and selling pressure.

“When CMF weakens this aggressively, it typically becomes difficult for the price to mount a meaningful recovery,” Olanrewaju said.

If selling pressure persists, he added, BTC could retest support around $82,622.

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