The hidden aspect of cryptocurrency market makers is an exciting and mysterious world, much like a huge city teeming with life at night, where deals are made and conspiracies are scratched away from the eyes of censors, Imagine yourself entering this world from a back gate, away from the glamour of screens and volatile price news, Here, we're not talking about small investors or daily traders, but about hidden forces that move the market like puppets.
These makers are not necessarily people alone, they may be huge hedge funds, giant investment companies, or even secret groups of programmers and traders working in tight coordination,These possess enormous influence and the ability to inject or withdraw vast funds into the market, resulting in violent price fluctuations that may enrich and impoverish others.
One method used by these makers is what is known as (Pump and Dump), where they promote an intensively designated digital currency, which artificially increases its price due to increased demand, When the price reaches a certain level, they sell large quantities of this currency, resulting in a sudden collapse of its price, while these makers earn huge profits at the expense of small investors who bought the currency at high prices.
There is also what is known as Algorithmic Trading, where complex software is used to automate and purchase orders, based on predetermined criteria, These programs are able to analyze huge amounts of data and make trading decisions in parts of a second, giving them a huge advantage over human traders.
In addition to manipulating spot prices, market makers can influence futures prices and options, Through massive sale and purchase orders, they can push prices in a particular direction, triggering stop-loss orders for others, thereby increasing their losses and earning additional profits for market makers, This type of manipulation is more complex and targets professional traders using derivative trading tools.
The influence of these makers is not only on price manipulation, but also on public opinion by spreading rumors and misleading news through social media and online forums, They may spread positive news exaggerated by a particular cryptocurrency to encourage investors to buy it, or spread negative news about another currency to cause panic and prompt investors to sell it.
Some market makers also have relationships with social media influencers and some media outlets to spread misleading or exaggerated information about certain cryptocurrencies, This helps them attract new investors and increase demand for these currencies, leading to higher prices.
This hidden aspect of the cryptocurrency market shows us that this market is not always as fair or transparent as it might seem to some, There are hidden forces working behind the scenes, seeking to achieve their own goals regardless of the interest of small investors, Therefore, it is essential that the investor be cautious and informed and conduct his own research before making any investment decision, and not drift behind rumors and misleading news.
We should also mention that these practices are not always legal, and that there are efforts by regulators in different countries of the world to combat these practices and protect investors, However, the nature of the decentralized cryptocurrency market makes it difficult to track and hold these makers accountable.
Ultimately, understanding this hidden aspect of the cryptocurrency market is critical for anyone who wants to invest in this market, The investor must be aware of the potential risks and treat this market with caution and awareness.