From Cointelegraph

May 5, 2025 11:00 am:

Market manipulation is a growing threat affecting both crypto and traditional markets, with sophisticated networks coordinating activities across exchanges. Historical examples like Thales of Miletus and past market bubbles show manipulation’s long-standing presence. In the crypto world, organized groups exploit market fragmentation for their advantage, presenting new risks to the industry.

Analyst James CryptoGuru warns of manipulation risks involving spot Bitcoin ETFs, which could trigger downward pressure on Bitcoin’s price and create imbalances. The interconnected nature of crypto markets allows manipulation attempts to have far-reaching effects, with attackers exploiting arbitrage opportunities across different platforms. This poses challenges for detecting and preventing manipulative activities.

The cryptocurrency market faces increased risk from well-funded groups with technical tools and cross-platform access to execute complex operations. While not all manipulation is illegal, the line between legal and illegal activities is blurred. Exchanges are fighting back with AI-powered tools, but the rise of multichain, multi-exchange manipulation poses new challenges in maintaining market integrity.

Collaboration among exchanges is crucial in combating manipulation, as seen in cases like platforms supporting Bybit during a hack. As manipulation tactics evolve, early detection and collective vigilance are key in safeguarding the integrity of the crypto trading ecosystem. Despite the ease of market manipulation, avoiding detection is becoming increasingly difficult, emphasizing the importance of proactive measures to protect market integrity.

Read more at Cointelegraph: Crypto market manipulation schemes are becoming increasingly coordinated