Market Manipulation or Price Suppression? ... Or none of the above?
Market manipulation or price suppression: a much debated topic the past few weeks and months. After a parabolic rise to an all time high of almost $20,000 late december 2017, prices of all crypto-currencies dropped hard, with some of them dropping 90% in a matter of weeks. During this time we've seen many theories arise, looking to calm the minds of all those who bought in near the highs and have since seen their investment melt away in the proverbial blink of an eye. Answers had to be presented to first explain and then combat this horrible downtrend...
Two stories in particular gained massive traction. First there was the story about Nobuaki Kobayashi, the Trustee of Mt Gox, who sold $400,000,000 of Bitcoin and Bitcoin Cash since december 2017. Many articles and YouTube videos blamed Kobayashi for Bitcoin's downfall, despite there also being many articles pointing out there's no correlation whatsoever.
Most recently there's the theory about The Cartel, by @supercypto1. While there's a lot of things in his article that I fully agree with (yes, market manipulation is real), there's no real reason to assume prices are suppressed, much like in the case of Mt Gox before. Yes, prices started dropping right after the futures started trading in december 2017, and yes, similar things happened with the prices of uranium, silver and gold. But that only shows there's a correlation maybe, and doesn't guarantee actual causation.
I'm glad I know a YouTuber who can explain this much better than me, and I'd like to invite you to watch DataDash's video on this topic "Is Bitcoin being suppressed by a cartel?":
What I want to say is this: don't panic. Better days are coming. Nothing has fundamentally changed since december last year. The blockchain technology and its use cases haven't moved an inch. In fact: most news about the fundamentals was good in 2018 until now. There's no crash, there's only a much needed correction; there was nothing but the hype surrounding the CBOE and CME futures supporting the rise from around $7,000 to almost $20,000. Nothing at all. Here's the conclusion of the december 11th article on fortune.com:
"It’s hard to say for sure how bitcoin prices will be impacted by the price of futures, though investors generally should expect to see futures prices come together when the contract settle.
It’s also thought that shorting bitcoin, which several major financial powerhouses such as J.P. Morgan’s Jamie Dimon have dubbed a “bubble.” would be easier through bitcoin futures. But so far, given the massive demand for bitcoin futures in the few days they have been trading, it’s still unclear how that theory will pan out."
As far as I can see this is exactly where we are now: we're seeing future contracts settle and the Bitcoin price comes back to the price right before the hype. From here on we should be able to go back up, and also see Bitcoin's price be a lot less volatile; isn't that what Leo Melamed meant when he said "We'll Tame Bitcoin"?
Sit back and relax; don't panic about the market cap. Tamed or not, it'll come back.
If you like this content, please consider to reply, resteem, follow and/or upvote! Thanks.
complete manipulation... We just have to learn how to ride the waves
great article my man...
what that Leo Melamed says,bitcoin will be tamed...that is about all to know no? look at gold,when QE 1 started it went up fast 2009- 2010 and with QE 2 even more,and so on,until the went all the way to QE unfinity...but after QE3 the price of gold fell hard...the circumstances where the same,so why did it drop when the money printing went crazy??
because every day in londen the gold price is fixed,they do not even hide it...look it up...so price fixing in commodity's is legal...they fix the price,tell people on the inside and make money...great sceam...annyway...with the paper bitcoin now in place,you think that investers will buy bitcoin or paper bitcoin???they will by the paper and with the paper they will fix the price...nice you know so much about these things,see you have only 25 reputation...keep up the good work my man...you will get there.
maybe try some bots here...get you in the spotlights...
greetz
Thanks so much for this very upbeat response: this really motivates me to write more :-) And thank you for the upvote also!
keep it up bro...nice post.
Thanks for the encouraging response my friend! I will try to post more articles regularly.
Probably there is a cartel and for sure there is some kind of market manipulation. These are just waiting to let the prices below a certain, then they will jump back on the wagon and let it ride to new record heights. To do the same thing over again! This will keep on going as long as they are powerful enough and there are weak hands in the market.
I rather see my portfolio to go bankrupt then to sell my holdings to cheap to a whale, laughing his pants off.
But we have to face the fact that the market is ran by sentiment!
I share that sentiment 100%!
Also, I think that the price of 1 Bitcoin will be worth several millions dollars in the distant future. It will take substantial volatility to get there. and speaking of futures.. fuck bitcoin future contracts.. When everyone just uses bitcoin as a system of measure.. and it is not traded or even used as a toll to profit, it will be a sound currency. Satoshi may be mind, we coded mind into computers.. strange.
We have been disillusioned when it comes to money, or what is defined as a medium of exchange. Money is the measurement, not the value. money is worthless... and costly Proof of Work is abnormal, because electricity should be free. These things are coming. When you can verify transactions for free.. or maybe at the cost of just noise.. ASICs running 24/7 for free... verifying our transactions.
I like EOS... an online community like steem but with ..more opportunity.
-great post
I truly like the way you think! Thanks so much for you insight and kind words!
I also see a bright future for EOS; they really built up a broad base with their 1 year ICO and are ready to go by June 1st. Bright times are ahead :-)