ChainCatcher reports that Ari Paul, founder of BlockTower Capital, said market makers may indeed engage in short-term manipulations during weak market conditions—for example, slightly pushing prices of MSFT or BTC by around 2% to trigger stop-loss orders—but such activities are typically intraday maneuvers, with prices often reverting within seconds or minutes, having limited impact on the long-term trend of highly liquid assets like Bitcoin ETFs. He noted that the primary driver behind this recent BTC decline is early holders selling tens of thousands of BTC, while market buying pressure has been insufficient. Ari Paul believes that large-scale, long-term manipulation, while not entirely impossible, is unlikely and carries high risk. In most cases, market movements deviating from expectations should not be simplistically attributed to “manipulation”; investors should refine their analytical frameworks. Additionally, compared to “downward manipulation,” “upward pushing” is more common across various asset classes.
BlockTower Capital Founder Attributes BTC Drop to Early Holder Sell-Off
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Summary
BlockTower Capital founder Ari Paul attributed the recent BTC decline to sell-offs by early holders, not market manipulation. He noted that while market makers can cause intraday volatility, these rarely impact long-term trends. Paul emphasized that capital protection remains critical, as insufficient buy-side demand has failed to offset large sell volumes. He added that upward price movements are more common across assets, suggesting traders should evaluate risk-to-reward ratios before entering positions. Large-scale manipulation, while possible, is riskier and less likely, he said.
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