A vey interesting article about a cartel suppressing prices in crypto emerged a few weeks ago. It was banned on medium but its steemit copy is still there. First take a look.
Since then many of you have asked about our opinion on the cartel in crypto markets. Is it really possible that a cartel suppresses prices in crypto? Well, lets give our few satoshis on the subject. The well recognised article tries to prove that in some markets like uranium, gold and silver the cartel has successfully suppressed the price for a long period of time. We are talking about years here.
Check it yourself:
As you might notice, all these charts compromise years of price movement. Now look at the BTC chart.
Do you realise that the chart only represents only a few month of BTC price movement? The first thing we have to understand is that the BTC markets and crypto markets in general move way faster than traditional financial markets. While BTC only needed rarely 10 months to gain almost 2000% in value, gold’s bull run took 10 years to reach ATH with 580% price increase and the price is still at a high level in comparison to where it was before the bull run had started. Looking at the chart for Uranium, one can see that the bull run needed 6 years to reach its ATH with a 2018% increase in price. At that time Uranium was totally overvalued and the Global Recession of 2009 led to a massive price decrease in almost all markets. Moreover, its worth mentioning that Uranium started another bull run in 2010 which was suddenly interrupted by the reactors misfortune in Fokushima 2011 which lead to a price devaluation. This has nothing to do with suppression. Its questionable that the author even mentions Uranium when he claims that the primary purpose of the “Cartel” is to suppress the prices of assets that appear to be a threat to the ‘fiat stronghold’ that currently exists on the planet. How can Uranium be a threat to FIAT? Neither does it act as a currency nor could it ever be a threat to the ‘fiat stronghold’. So whats the point of suppressing the price of Uranium!? We could easily go on and find more inconsistencies in the article but we would rather give you an alternative explanation for the long lasting bear market. We do not have a single doubt that there is price manipulation in the crypto market. However, we are not going to use the term “cartel“ as there is no evidence (and the author doesn’t provide any!) for its existence. Of course, we can’t also not fully deny the existence of a cartel in crypto. However, the following explanation should provide you with an alternative explanation for what has recently happened to BTC:
- whales and wildcatters bought Bitcoin to stock up for futures contracts
- as the price went up, they were making money on their Bitcoin investment
- when the futures started (roughly 20k USD BTC valuation), they opened shorts in the futures because that’s what futures options enable
- they then periodically sold their accumulated Bitcoins to drop the price so their futures could bring them profits
- they kept opening new futures shorts and selling their Bitcoin until they no longer had the Bitcoin required to lower the price
- what will happen soon? They will run out of Bitcoin and won’t be able to move the price down further
- the cycle will be finished and with their profits, they will be able to repeat the cycle buying Bitcoin up to a new ATH and...
- repeat steps 1-6....
The whole process was made possible because:
- The majority of people who bought BTC and alt coins did not even understand crypto (not to mention its crazy volatility)
- Majority of Dec/Jan buyers didn’t believe in BTC in the long run • Majority of Dec/Jan buyers wanted to get rich quickly
- The majority ignored basic trading rules
- They bought high and panic sold when the price went down (weak hands, FOMO and panic selling
- Alt coins are in a toxic correlation with BTC —> when BTC goes down, alt coins also go down.
But there is one group that would love prices to be suppressed.
The banks.
When saying “the banks”, we don’t mean only the major banks but also all financial institutions, venture capital organisations, accredited investors, financial funds and the like. It’s time you understood that their aim is always the same - create money off your money, out of thin air, and control the order of this world. The’ve been playing this game for a few centuries and are damn good at it. The were always first to spot a chance and monopolise it. But they shrugged off Bitcoin when it was created as a counter measure to what they did to the world in 2008. They simply ignored it, thinking it was nothing but a fad. Well, it wasn’t. When they realised it could overthrow them, it was to late even to destroy it. So, they decided to jump into the game, but this time they had to pay the tax. Tax for being late. But they are so powerful that they own most of the media in the world and have even control over most global companies (who keeps companies’ money? Do you think they keep it in vaults, and not banks?). They can influence governments, political campaigns, elections, laws passed - look what kind of bandit tax law on crypto has been introduced in Poland this month. And where do you think the Polish Prime Minister comes from? What’s his background? Yes, you guess it right.
And this is one of the BEST years in Crypto! And it started like a disaster. Banks via owned media created FUD, bringing the price down, so they can buy in. And their buying power is so huge that the entire crypto industry looks like a child’s play in comparison. And their top teams will outsmart the masses, because we as a mass are incredibly stupid and easy to manipulate. Their ultimate goal is to crash crypto to lows that would result in people panic selling. Some of this has already happened but they would be ultimately happy if BTC hit 2-3k USD. But even if it hits 5k USD, it will be 75% lower that BTC all-time high. Still not bad. Banks will start profiting BIG on the easily manipulated mass. And sooner or later, the whole crypto will be regulated. Regulations are good for the banks and governments only — because then they can force ICOs to the hands of accredited investors and Venture Capital. And they own Venture Capital, so all future tokens will be in the hand of banks. And all taxed like hell because the government will not tolerate you getting rich - that would mean lost control over their herd and that’s they cannot allow to happen. Obviously, there are scams in the industry and that narrative will be used to threaten people. But the biggest scammers are governments and banks with the only difference in the legal system that allows their fraudulent activities. So, are we really that stupid to follow their lead? Not individually, because so many bright people are now reading this, but we as the mass are a group of media-manipulated, controlled, poisoned, mind-fucked mob of people. And it’s our right for privacy - why couldn't we transfer money to whoever we want without any government agency ever knowing who we transferred it to? Let them fight crime the other ways, not by coming into my house observing what I am doing.
Unfortunately, we do think that people are too stupid/manipulated (choose the word that suits you best) to understand how they are being played. In 10 years time, most of BTC will probably be in the hands of banks, with a bunch of whales/early adopters kicking it in the Bahamas. The rest of them will quietly become slaves to the new system. But it is still not too late. Perhaps, it’s too late to make crazy gains on BTC (it’s already played and controlled since a few months at a large scale as we’ve told you in December), but there are still fundamentally great coins out there. Stay in touch with CryptoMedics to find out how to spot them and create your own financial freedom. Conclusion All in all, it is up to you to do your own research and make a decision which suits you best. Now you have two different explanations for the current and relatively long lasting bear market. On the one hand, you have the cartel explanation on the other hand you have the correlation of different factors and the banking factor (whales manipulation, ignorance of basic trading rules, fast moving crypto market).
As usual the truth probably lies somewhere in the middle.
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