Holding assets are becoming more difficult to possess and near impossible to determine intrinsic value. If I could be blunt I would say that the retail economy has become a den of speculators and gamblers. Low interest rates and stealth inflation has all but made investors look for yield and gamble towards it.
In such manipulated financial markets many of our favorite Wall Street firms who are too big to fail; know they can get away with almost anything they want.
https://www.reddit.com/r/wallstreetbets/
Take the whole wall street bets gamble. They noticed hedge funds like Merlin shorting over 140% on Gamestop stock, AMC etc.. and made some history as of late. Never mind this is completely illegal, but instead are being attacked for their own due diligence in taking advantage of such an illegal act.
The crypto sphere isn't tide to the hip with these kinds of speculators but do have our share of manipulation. Crypto in general does share similar goals in outing and taking advantage of criminal financial moves.
What Is a Short Squeeze?
A short squeeze occurs when a stock or other asset jumps sharply higher, forcing traders who had 'bet' that its price would fall, to buy it in order to forestall even greater losses. Their scramble to buy only adds to the upward pressure on the stock's price.
https://www.investopedia.com/terms/s/shortsqueeze.asp
So they shorted and now the hedge funds are scrambling. Yet some-how these billion dollar firms can short ladder up and bring the stock down in order to exit their ill fated gamble. In response many wall street robin hood kids are trying to buy more to keep the price up. However I do believe they are more than likely to fail because of the mass manipulation inside the corrupt financial industry. How this plays out may Rekk a lot of these financial revolutionaries. They do not hold the gate keys to the exchanges who take their marching orders from elsewhere.
During this 'raid' there was tons of talk in regards to shorting Silver. This is in my view (and many others) more impossible to control or take advantage of. There are simply way too many hands holding paper contracts that far out way the actual physical supply. In a digitized world where you can print money out of thin air; the same applies to commodity markets and there paper contract cohorts.
Why is silver specifically so important to manipulate? Well simply put the demand for industrial metals such as silver would completely destroy the way we purchase goods that require it. It could be seen as a natural threat to our ponzi game economy. Imagine the price of silver was $100-$1000 USD. What would that do to all of the 'cheap' electronics we buy? It's just too much of a threat.
What else is new in a financialized and politicized world. The two have a very incestuous relationship and it's clear there is no real price discovery within this matrix. Nothing really makes sense in fundamental terms so we follow the yellow brick road all the way to the wizard behind the curtain.
Just like the fiat dollars made into existence from nothing; the same can be done to any commodity that is 'digitized'. Supply and demand have absolutely no domain in such a market. You can be stuck in the matrix and hold no power to the controls of the environment.
The question for us investors are where should the fiat dollars go? Real-estate is getting pumped, Stocks are getting pumped, and of course Bitcoin is getting pumped.
Now Bitcoin is an exception as it is a class of asset to counter the fake money out there. Can Bitcoin avoid the terrible manipulation of price? Well it all depends on how much the futures market can print their own certificate in terms of how many Bitcoins are our there. Forget the whales on top of price movements as well.
https://bitcoinist.com/are-bitcoin-futures-market-manipulation-scheme/
"One of the untold stories of the past few years is that the CFTC, the Treasury, the SEC and the [National Economic Council] director at the time, Gary Cohn, believed that the launch of bitcoin futures would have the impact of popping the bitcoin bubble. And it worked."
Fast forward to 2021 and we must ask ourselves can the futures market do this again to Bitcoin's price? Hard to tell when you have Elon and Michael Sailor pumping it up! There's also the age defying question of nature and gravity. What goes up must come down! But when you control the elevation and deflation within a virtual sphere you can change the rules.
The ETHEREUM futures just launches recently. Some crypto pundits were questioning if the same drop would happen to ETH as the futures impacted BTC. Well during a bull-run we got our answer. Perhaps some bulls just crash through the manipulation; up until the run is over.
So am I 'bearish' on cryptocurrency? Not at the moment. I do believe this will come into play as the years go by. I also cannot be 'bearish' during a bull-run.
The Emperor has no cloths. Gamestop, AMC, Bitcoin, Gold, Silver and countless other assets have shown that there are only predators in the financial sector. When Bitcoin crosses the 100k USD mark there will come more and more machinations to control it's price discovery. We all must be weary of this; as central digital coins become more widely viewed as the 'answer'.