Cruel Mistress.
The crypto market is well known to be a volatile mistress that no one can predict but can it be Manipulated? Well, first we need to look at the market, not as an object but a collective of investors. We are what drives the market prices up or down so, those who can influence us can influence the market. This means the market is totally susceptible to influence because we are.
Predicted Crash.
Back in October Jim Rogers and Marc Faber predict a severe stock market crash which could be coming any time now. The market moves in cycles and crashes happen roughly every 8 to 12 years. The next crash is expected to be the worst crash in 75 years according to Jim Rogers. The recent crash in the stock market could be considered a flash crash and could indicate impending instability. So what if the crash is coming?
How will the whales protect their money?
Well, they have to move it into something that will retain or increase its value, enter cryptocurrencies. Unfortunately, the price of bitcoin around November and December was pretty damn high and any whales wanting to cash out of the stock market would be looking at buying at pretty much all-time highs. This is obviously not what they need to hedge their funds.
Cluster FUD
In order for whales to get into crypto they would have to decrease the price to make it safer for them to invest. They could just wait for the annual price drop that occurs in January nearly every year and get in then. But whales are greedy, that's how they became whales in the first place. The Media starts dropping bad news article left right and centre about Bitcoin and crypto in general with news of regulations where many turn out to be false or misinterpreted. Coinmarketcap.com stopped reporting data for some exchanges, Bitcoin futures and the lunar new year all contributed to this Cluster bomb of fear around crypto.
If you think we're not manipulated just look at this tweet
Should I be Wearing a Tin Foil Hat?
Am I just a crazy dude looking too deep into the chaotic market and stretching to look for meaning in something where there is none, or is all this connected and a way for whales to invest their funds from the incoming crash? I'll let you decide.
Thanks for taking the time to look at this and if you could, give me a like and share as it costs you nothing and has value for me it would be greatly appreciated.
Great article. I followed back :)
I think they will continue down this road using QE
https://www.investopedia.com/terms/q/quantitative-easing.asp
With this method they can postpone a crash in the markets until the big players believe the FED will default on the bonds, and look to liquidate assets.
That does sound like a likely route for them to take.
Nice post and I'm completely agree.
Also let's not forget that almost all exchanges accepting fiat closed sign ups in the middle of December. And Korea selected a pretty good time to announce the "complete bitcoin shutdown".
It's time for cryptocommunity to learn on past mistakes and stop so sharply reacting to government and media statements.
I hadn't even considered that shutting down of Exchanges could have been a forced move. Guess I'm not a fully fledged conspiracy theorist yet.
Don't where I read it, but Korean crypto shutdown wasn't initiated by the Ministry of Finances, but the Ministry of Justice and the minister of justice made pretty much money on the dump.
I don't know if the whales have manipulated everything (like CMC with their Korean exchanges ban or for example the timing of BitConnect getting exposed), but I'm sure that they manipulated the media to create some more fear. It's been a crazy experience to see BTC go down all the way to 5.9k, and to see how fast the mentallity of people changes in those bearish weeks. Nothing fundamentally changed about the technology or market itself, and still so many people were screaming this is the end. We all should be critical about what we read and make choices around what we believe, not what the media wants us to believe. But that's of course easier said than done :)
Nevertheless: Solid article! Found you via via and you got yourself a new follower :).
Great article! I think it was more than the trading desks which wanted a position in crypto but only at lower levels. I think the true manipulation came (is coming) from Bitcoin Whales using the CME Futures market to make a killing. Its very similar to what the silver and gold whales did before the days of "paper gold/silver" via ETFs. The alltime BTC high occurred almost simultaneously to the CME/CBoE launch. They take an opposite position then move the market and then covering for a huge profit.
BTW I have a closet full of tinfoil hats ;) I followed back!