A new theory has been put forward that suggests that the recent magnanimous rise and fall in Bitcoin prices is actually the doing of Wall-street investors and Banks together with the help of Mainstream Media. Coin Crunch India got in touch with the redditor who put forward the theory that goes like this:
Take some time to go through this before coming to conclusions especially after being influenced by ‘media’.
“this is just a theory, and much of them may not be facts, but they are views taken from various people I know, along with some insider news and analysis of some news articles”
2017 was the year Bitcoin and cryptocurrency gained the mainstream media attention after cryptocurrencies captured and secured a market cap of $100 Billion.
Bitcoin isn’t about speculation, and it isn’t a ‘get rich quick’ scheme where you can be a millionaire overnight. That’s where most of the people take it the wrong way and end up losing ‘both money or cryptos either way’. Of course that’s a major reason why it stays above the moving average most of the time. People use it in a way to ‘earn’ more money, through trading, gambling, speculation and other things. And that’s what is gaining media attention in a negative way.
Let me highlight a few cases on why it was designed, what it was supposed to be, and what are the restrictions it is facing from achieving the goals.
You may have heard about the so called ‘whales’ owning a huge amount of Bitcoins, who can control the market as they wish. It’s true, but as far as I know, most of the whales have a vision, that is, to make bitcoin go mainstream.
I may or may not be a whale, but let me consider myself temporarily as a ‘whale’ just for the sake of this article.
As you may know, if I have a million bitcoins, I can easily sell more and buy back during the dips to churn out money, or I can simply sell everything for money and live a peaceful life on a private island I can own.
But I wouldn’t do so.
Think about it: I became aware about Bitcoins before 2010. I wanted to support the idea, I wanted the idea to become mainstream, and to be practically implemented. The project is still far from being implemented for mainstream use and it will take time, but as an early ‘bitcoiner’, I should support Nakamoto’s vision, the Bitcoin ecosystem, in a way the bitcoin and the emerging cryptocurrency ecosystem is designed to work like.
We are whales for a reason, we don’t crush the dreams of the people who support our vision. I have personally seen people investing even millions of Dollars into Bitcoins just because they believed in the project. I have seen many novice investors investing in Bitcoins, only to be manipulated by ‘so called whales’ and exiting the market in a loss.
We never post the so called ‘Fear, Uncertainty and Doubts’ amongst the people when pieces are high so that we can short and earn more money. We never tell people to buy more so that the ‘value’ of our portfolio increases in terms of the USD.
Take example of the creator of bitcoin. The person could have sold his/her/their bitcoins all for cash and be a billionaire.
Let’s now forget these and come to how the wall streets and the mainstream media are manipulating prices.
There has been a question regarding ‘legality’ of bitcoins among some countries, but that is limited to hardly 10-11 countries in the entire world, and the media spread so much panic amongst the people that it triggered a 50% selloff every time these kinds of news about ‘ban’ came.
We should all be concerned with one thing, media and governments tried hard to stop bitcoin from growing, and they have found no other ways except kill it one last time so that they can actually fill their bags before things go mainstream.
These people don’t know the fundamental value of bitcoin. But they do know how easy to manipulate the common people by spreading both good and bad news.
Conspiracies started to unfold Right during the ‘China ban’.
Just before a crash was predicted, mainstream media kept on Highlighting how ‘Bitcoin’ outperformed all investment classes, Bitcoin may be the future of currency, and the so called real use cases of bitcoin.
They spread the hype so that people invest everything they had, in Bitcoins, pumping up the value thereby.
We often came across articles where we saw people even their home and cars for bitcoin.
They gave a sort of illusion to the common people that Bitcoin isn’t going anywhere, so many people even bought blindly, some bought at all time highs that time.
Moments before the ban, if you look at the charts, you will see some good movements. Chinese governments knew about it, and they might have probably sold everything just before the ban. After the ban, in spite of people aware of these things, they kept on repeatedly influencing people to test the panic selloff, so that media can buy the dips.
Bring Jamie Dimon into the picture. He claimed Bitcoin to be a “fraud”, and a “Scam” and threatened all employees in his company from investing. Moments after his statement, along with the so called ‘FUD’ surrounding the china ban, we saw some huge green candlesticks. One of them was rumoured to be Jamie Dimon himself. I would recommend you all to google this and find out, and I am not going to comment on it; but that’s the sad truth.
Months later, when Bitcoin hit the $20k mark, he told he was wrong. But even his company didn’t stop claiming Bitcoin is still a scam.
Come 2018, and we see fear, uncertainties and doubts surrounding Bitcoin and all virtual currencies again. Banks, governments and just everyone else in the world is trying to stop this revolution from happening.
There is a cycle involved with a lot of insider trading, which the wall street investors and the mainstream media do in sync.
Prices suddenly skyrocketed to around $20000 after the CME and CBOE futures launch. Prices were already pre pumped from before, as the wall street investors wanted to short bitcoin, which was all pre planned well ahead of the futures launch. So we were a bit aware that the prices will drop temporarily in future.
The wall street players paid mainstream media to promote Bitcoin as a hot new thing of the future, with bets like “Billionaire trader bets $1 million price of bitcoin” and “Former hedge fund manager bets Bitcoin will reach $50,000 by end of year” and stuff like these to provoke people into buying the currency affected by FOMO (Fear of Missing Out) The common man, having no knowledge about these. already see prices rising and they end up buying at prices far above the moving average. Some people even bought at $20,000.
When futures launched, Wall street investors had the opportunity to short at that price. (do search on google and know what is short trading, for those who don’t know)
Now was their turn to spread shitty news to the mainstream media to bring prices down so that they can close their short positions in profit once their contracts expire.
The media was paid to promote all sorts of fear, uncertainty, and doubts to bring prices down. There was a rumour that wall street investors will pump all their money from Bitcoin to altcoins, which were already in dips, and people started trading Bitcoin with altcoins like crazy, without even seeing the prices. As a result, we saw crazy gains of over 3000-4000% on some altcoins in just a month as well. This kept Bitcoin prices in check, and Bitcoin market dominance fell to a record All time low in January.
Now as the expiry of the first smart contract came near, we saw even more FUDs and news like ‘South korea banning Bitcoins’, ‘France and Germany banning bitcoins’, ‘India banning Bitcoins’, ‘China threatening currencies which were developed by Chinese developers’; most of which were fake news to make people panic in fear.
Even the South Korean government officials are caught doing insider trading by taking advantage of the Fear, Uncertainty and Doubt (FUD) revolving around the ‘South Korea Ban’ that came up recently.
They shorted Bitcoin moments before they asked the mainstream media to promote the FUD amongst the common people, which initiated a panic selling. All the way from around $15000 to $9000.
Now don’t ask me why and how, but I analysed the charts only to see ‘FOMO’ candles, which indicates wall street brokers already started buying bitcoins after selling their contracts. They are looking for a base support level where they can open long positions with additional leverage.
So take it as a fact. 90% of the paid media channels will promote all sorts of good news to the people so that they start to buy back again, thereby pumping the price up, so that they can close their long positions again at all-time highs.
Now this is what we call corruption, and Bitcoin was never meant to support the corrupted and weak panic sellers ever.
I personally saw people invest hundreds of thousands of dollars during these predictions like ‘Bitcoin will reach $40,000 by end of this year’ only to be manipulated by mainstream media, and some people even bought at all-time highs, after being influenced by media, only to lose more than half of their portfolio during these wild corrections.
You want to know why cryptocurrency is volatile?
I have covered all possible reasons.
You know why cryptocurrency is called as a ‘gamble’ by governments?
The way the media and wall street manipulates prices. And even governments themselves do that….
I have covered the reasons.
Now you may want to know why Banks are blocking the transactions.
Firstly let me tell you one thing, this is the bitter truth, and possibly one of the major reasons. “Banks are shit scared of this ‘decentralised’ and growing economy, which will put an end to this centralised madness and the monopoly played by banks and governments all these years. And the banks never want that, and they will take all measures to curb deposits.
The second reason is the wall street brokers playing foul…. They have paid most of the large banks to stop processing transactions of the common people. So the money which you put in beforehand is the smart money, and those who kept on holding throughout this dip, I congratulate you all for securing a place in future!
And take it as a fact, banks have got no explanation as to why they stopped transactions, which psychologically translates that they were bribed to do so. So, mark my words, soon as the rumour hits that the wall street opened long positions, banks will start and open deposits for everyone.
Ever thought one more thing? With so many banks denying transactions now, how come did the market add almost $200 billion in 2 days? (as written on 20th January, 2018)
If you are also thinking about the same thing, you may be probably correct. Wall street people doing insider trading.
Another thing for sure, even if price of bitcoin hits a 100k dollars, expect another steep decline till it reaches half its value again. There is a tool using non-Linear logarithmic regression to predict the prices. Do watch out why and how these so called ‘Big’ traders bullish on bitcoin come to these figures. Media dilutes the news even more and feeds it to the public….
Let me tell you about the government telling that Bitcoin is being used for ‘illegal activities’:
Do research and know about the things first, check up on the internet. Due to the open nature of blockchain, and since all transactions are visible publicly on the public ledger, Terrorists and Drug dealers refrain from using Bitcoins, and that’s a fact. Check for yourselves once. Less than 1% of the transactions carried out using bitcoins can be classified as ‘illegal’ or ‘unlawful’. Still governments spread panic amongst people that 90% of the people use this currency to promote terrorism, and if that was the case, global terrorism funds would have reached more than $500 billion, and the terrorists would have already executed several mass murders and destruction. It’s too easy to fool people into believing that Bitcoin is used for terrorist funding. The real issue they are facing is about ‘Tax’ and possibly that ‘Banks may become obsolete soon’. There is always a different reason than what we think, what the government intends to tell, and what the government does. We follow their cycle, we are still ‘ruled’ by them. Bitcoin was designed to break free from this enslavement.
Another question comes in mind:
How do the wall street investors use the future contracts to really determine prices?
Upon CME entering the market, it was speculated that Wall Street would take charge over the price discovery of bitcoin. The futures market (CME) and the spot exchanges (e.g. Gdax, Bitstamp, Bitfinex) are indeed interconnected through the actions of arbitrageurs and market makers, so there is no flaw in that thinking. But at 136,950 BTC per month, the CME volumes are currently too low to have any noticeable impact on the market on their own accord.
There however a certain signal value to the CME market action which may influence traders other ways. The clearest example of such a thing I’ve seen was during the initial hours of the Cboe bitcoin futures launch on Dec 10, where Cboe completely dominated the price direction even on minuscule volumes. The CME and Cboe are potential avenues for institutional traders. As such, other traders might assume that CME and Cboe traders have access to better information; that they are “in the know”, so to speak.
So if you look at the volume of Bitcoin volume on these exchanges, you may not see a ‘huge’ volume, and wall street investors are still experimenting with this kind of trading with an amount ‘they are willing to lose’. The value no doubt can be quite high for the crypto market in general to initiate good swings, but still until and unless the influence the common people, price swings wont take place by large margin.
If you wanted to capture what the signal was from the CME during the days leading up to our recent Jan 17 $9,017 low, you would have needed to gauge whether the CME bitcoin futures traders were mostly entering short or long positions. To some people, this task is confusing since every futures contract has both a short and a long side, so no matter how many contracts are traded, the net difference will always be zero. But that thinking fails to encompass the fact that a trade is the match between two different types of orders; a market and a limit order. The limit order is placed by a person (often a market maker) who enters a price where he’s willing to buy (long) or sell (short) at. At that point that’s just an order; it doesn’t cause a trade to happen yet. The trade happens on the market order; a person hitting the “buy now/sell now” buttons that consumes the closest limit order in the order book. If we then compare the net difference between the different (buy/sell) market orders placed in a certain interval, we can then gauge where the price pressure actually came from.
Now have a look at the graph below:
We see the cumulative delta of the January CME bitcoin futures. It tracks the difference between market orders, i.e. short and longs. Looking at the red box, we can infer that there was an unusual increase in short positions, which meant that CME traders were ‘betting’ on a crash, since the cumulative delta went negative even when prices stayed relatively flat. So we cannot possibly say that the wall street traders betting on cryptos are betting through CME and CBOE. The mainstream investors are causing the move. Media has got a huge influence, like I told earlier, its easy to fool people due to lack of regulations and small crypto market cap overall.
So let me tell you my personal view in a nutshell:
Institutional money is flowing into cryptos, It is just about to start. And since institutional people are wise enough, they shorted bitcoins, spread fake news and panic amongst common public, to trigger a huge selloff, combined with rumours about ‘potential bans’ from banks and government, to bring prices down as much as possible before they buy. And let me tell you one more thing. The institutional investors are not going to allocate more than 5-10% of their crypto portfolio to open long/short positions with leverage. They are wise enough, they found the base support level, and are going to buy cryptos now in dips. Rememmber what is called ‘hedging’ The have found a way to hedge one crypto against another, just by using two different techniques. I am not a wall street trader, but I know the way they do these.
Once their buying is complete, they are going to tell media to spread all good news regarding cryptos so that people buy again, thus maximising their profits.
And mark my words for real, the media is going to manipulate you, they have manipulated people before, they are manipulating now as well, and they will continue to manipulate till the term ‘the rich gets richer and the poor poorer’ holds true. And this will come true, since they are well aware that Bitcoin and other cryptos are going mainstream, with everyone wanting to own a piece of this ‘future currency’
And people who sold in panic after buying at all-time highs this time: well, you got brainwashed by media. Stop watching television. Remember, we were taught that the television is an ‘idiot-box’ in childhood? Our elders were right on this part. You may still buy the dips to have a place in future. I do predict one more crash before things go bullish again. Of course, since future is uncertain, you may ‘risk’ a minimum amount. Try to invest by supporting the vision and mission of Bitcoin and why it was created in the first place. You will never lose out if you ever do so. Mainstream media is centralised and they want to exercise control over everyone.
If you ask me about price predictions of Bitcoins, I would say to not speculate. True value of bitcoin will one day reach $0, people would be fighting for a share of this digital currency, once they become mainstream, and dollar will lose relevance soon. This is what the banks are scared of.
And let me tell reveal one of my predictions 5 years from now, on this anonymous thread.
The Dollar (USD) bubble which none of the so called “Financial Experts” are talking about right now will burst.
The 2008 like crisis will hit harder this time. People will lose all their money. Banks will go bankrupt.
Financial experts are already buying cryptos and keeping them stealthily, and most of the ‘experts’ already bought ‘cheap’ cryptos by defrauding people into believing that cryptos are a fraud so that they can take time to exit their positions from the market to buy ‘cheap’ cryptos while the ‘FUD’ prevails. Expect another 2-3 years of severe “FUDs”, “Crackdowns”, and “Bans” by centralised banks and governments before they lose the last battle once and for all.
We have entered one of the most epic ‘bubbles’ ever.
Dollar already reduced its value by a huge margin in the last 100 years. One Dollar is now worth 5 cents if you look at the true purchasing power of the dollar now. If population and ‘balance’ were to be taken into consideration, it should have ideally reduced by a factor of 2 at max. The inflation rate is unbalanced, the current financial system is unbalanced, the Federal reserve holds most of the world’s wealth. Cryptos were created to restore the balance. Bitcoin was designed to be the ‘currency of the people’ and not ‘currency for the people’ like the USD, controlled by a central bank, the value of which keeps on decreasing in value every day. And I don’t just want to be specific about just Bitcoin, but the idea behind the creation of cryptocurrency in general. People will no longer fight for dollars, because it can be printed, and people can get ‘more dollars’, which gives the illusion that they are having more money. They will be fighting for cryptos after a few years. There is still time to come and join this revolution. And people already holding cryptos should allow other people to get their first share of cryptocurrency and should not be sitting like a greedy person to buy more. Spread the word, let other people who are yet to buy their first cryptocurrency join the first ever peer to peer decentralised revolution. And you may never know who I am, but people should invest a small amount they are willing to lose.
Develop a platform through which we can start accepting ‘cryptocurrencies’ as a method of payment, or through which people of the world can find applicability of cryptocurrency Of course I wouldn’t suggest doing anything ‘illegal’ though….
We never lived in a truly democratic world. And I strongly believe this is the final step towards achieving the perfect ‘democratic’ world in the history of mankind.
If you liked what I wrote, consider sharing this article with everyone so that people don’t get ‘Fooled’ by mainstream media, so that we can’t be ruled by banks anymore, and we can live the dream life without any restrictions from the stupid and autocratic government.
We picked this up from a post on Reddit. The writer has chosen to remain anonymous, as it goes with Reddit but he/she/they have made a good point.
We advise our readers to trade in cryptocurrency carefully. We ourselves fell trap to an investment we thought was possibly the greatest idea after Cryptokitties. We were wrong.
Let us know the questions you have for the author in the comments below and we will get the answers in a follow up post for you.
Update log: “Finally Jobless” – the parent blog of CoinCrunch.in has been replaced by Coin Crunch India in the article.