Good morning ☀️

Is the drop of #Bitcoin# due to "speculation" or "manipulation"?

The answer to this question will determine whether the decline is permanent or a correction for a faster rise.

Although these two concepts are known among the public as if they are the same situation, they are actually very different concepts.

Manipulation is the act of intentionally creating an artificial price movement through various news flows or excuses, causing investors to incur losses and profiting from this situation. Due to its detrimental effects on small investors and the disruption of market dynamics, it is considered an illegal activity across all financial markets.

Speculation is the act of market makers selling their holdings to a certain level to drive the market down, and then buying back the sold product at a lower price to gain profit. This action is considered to create short-term artificial price movements on the board, and it is thought not to harm the structure of the market, making it an accepted practice across all financial markets.

Let's come to the answer to the question of why this concerns us...

The drop in the price of $BTC yesterday occurred due to the data from the US coming in higher than expected. In other words, the market maker misread the data to cause panic by selling at $121,000 and then buying back at $118,000, thus engaging in SPECULATION.

Why was speculation accepted? "BECAUSE IT DID NOT HARM THE MARKET WITH ARTIFICIAL PRICE MOVEMENTS."

As you can understand, this drop is a correction, meaning the rise will continue.