Market Maker (ММ): How They Manipulate Our Fear and Hope

Have you ever wondered what an MM is and why it always seems to know where your stop loss is? Market makers (often referred to simply as MMs) are not just market participants, they are market architects. They create the rules of the game we all play.

What are MMs and why does the market need them?

Market makers are huge players: exchanges, investment funds, large financial institutions, and the very whales that everyone is talking about. At first glance, their role seems noble - they provide liquidity, that is, they ensure that your order will be executed, and not hang in the void, waiting for a counteroffer. Without them, the market would be like a frozen lake - beautiful, but good for nothing.

MMs make their profit from the difference between the bid and ask prices (spread) and commissions. It sounds fair: they provide a service, they get rewarded. The problem is that this reward often comes from our pockets.

How Market Makers Control Prices and Influence Emotions

That’s where the interesting part begins. When a new coin is introduced and its price needs to be raised, the market maker becomes an invisible third player - he pushes the price up, creating the illusion of demand. And vice versa, when it is necessary to “ventilate” the market, it purposefully searches for clusters of orders and knocks them down like leaves from a tree.

Pumping, buying liquidity, scanning stop losses, price manipulation - this is not a conspiracy theory, this is the everyday reality of the crypto market. MM has information that is not available to us, and capital that is beyond our control. The result? They know exactly how to make us panic at the right moment.

Whales, Stock Exchanges and Financial Heavyweights: Who Is Behind the MM

Market makers are not one player, they are a whole ecosystem. There are trading robots of exchanges, and huge funds, and the same whales that hold millions of coins. Each of them, explicitly or implicitly, affects price and liquidity.

Double Game: Rewards and Risks

The paradox is that MMs simultaneously save and ruin the market. They create liquidity - this is a fact. They allow the market to function - this is also a fact. But they also know how to throw us off balance. Masters at creating inexpensive “false bounces” and sending newcomers straight to a loss.

I often say that a market maker is like an experienced hunter who knows how to attract prey, knows its fears and hopes. The question is how well you understand his game.

What do you think of MM? Do you see them as a necessary evil or as parasites of the market? Share your opinion below - let’s discuss together how not to become another victim in a game where market makers hold all the cards.