Recently, we have seen lots of institutional fund to come in the market. Tesla have invested and possibly soon we will see rich people are using BTC as store of value. As the days go, we see the mcap is increasing. When it will increase more, what do you think, will the price manipulation be decreased? Or even effected? If we look at the Tesla announcement, it didn’t create huge changes. India may have a ban on crypto, that doesn’t effect the market. So, as we see the increase in mcap, will we see power of manipulation is decreasing?
No but it is the opposite of it.
With this large institutions buying huge chunks of Bitcoin daily especially Grayscale, chances of them manipulating the market is high and knowing that they are holding huge amounts of it, it is easy for them to manipulate it.
Increased market cap is caused by these institutions slowly getting into the crypto market. Yes we may have seen some average Joes starting to invest into it but most of the market cap that has been added came from these companies and institutions. Manipulation will still be there and possible that it will increase because only a few companies are holding huge amounts of Bitcoin.