How Wall Street stole Bitcoin from the people in a coordinated effort of fear and greed?
For those that held their nerve and didn’t sell on the way down, and for others that see a bargain at $4000 you may still benefit from one of the biggest heists in history. It is clear that during 2018 the investment banks led by the power brokers of Wall Street have been behind the 85% drop in cryptocurrency Market Cap in a concerted effort to buy the dip and then we will witness the pumping of the prices soon enough, because they can and they will.
Financial history has a habit of repeating itself and we have been here many times before with other asset classes gold and other precious metals, property, commodities where the major banks and traders (people of financial influence) at one time of another pushed the value of these assets to all time lows, so they can acquire them for pennies and get a free ride the recover to riches.
We have witnessed a systematic approach supported by broadcasters who are close friends of the banks — CNN, CNBC, and the new crypto press Coindesk and Cointelegraph, that sold out for profit rather than defend crypto economy on which they were founded, to spread good news and encourage adoption, decided to propagate the fear on behalf of Satan, as greed once again took over from libertarian motives.
Wall Street missed out on large profits and they didn’t like it…
It would appear the bulk of Wall Street missed out on Bitcoins rise between 2012 and 2017 who were at the time largely ignoring crypto as the MktCap was tiny and uninteresting in terms of profit potential, and most thought Bitcoin would go away, fail or be shut down by the regulators, or dismissed as a mechanism for buying drugs and for money laundering. But then as the MktCap moved closer to $1trillion they made their move…
It reminds me of the scene where Number 2 discusses making money from the stock market with Dr Evil’s plan to see into the future. Wall Street know how to make billions but really want gazillions, and see crypto as a means to an end…
“Why make trillions when we can make billions” aka Dr Evil, as banks love to make money for nothing! And yes I shall be sending them a copy of the “Fire and Fury and also Evil and more Fire and Magma too” by Dr Evil printed by Official Satanic Publications.
Why does Blue Horse-shoe loves Bluestar Airlines?
I am reminded from the scene from the original Wall Street movie where Bud Fox on an apparent ‘dead cert’ on inside information relating to output from an FAA hearing, is about to clear the airlines after a crash investigation. Bud Fox at Gekko’s request spreads to word to trading desks up and down Wall Street with the code phrase — “Blue horse-shoe loves Bluestar airlines” the rallying call for equity desks to put their clients into the stock and for trading desks to pump it.
A systematic manipulation of Bitcoin was inevitable. In Wall Street they call it “a scalping”! And yes Regulators sat back like they did in 2008 taking the position that Bitcoin isn’t a currency, isn’t a security and let the people who increasingly purchased crypto currencies in larger amounts get raped with their eyes open. It is apparently legal for banks to steal Fiat money that bought Bitcoin? Because Bitcoin they have decided isn’t money or a security, yet its trading activity and options to make money clearly are?
What is in a definition right? Well for retail buyers about $500billion!
It is a little bit rich when only now after the horse has bolted do regulators mention cryptocurrencies are deemed securities and that we have to protect retail buyers from buying cryptocurrencies in these things called ICOs, where by the way they infer most are scams. But there is no mention of Wall Street being brought to account for talking peoples invested dollars that went into Bitcoin?
In any other market these actions would be called market manipulation, robbery and lies. But here we are reading about the what has gone before that catches in the throat and makes one want to vomit.
Apparently the alarm was raised several times, yet as the police car sits outside the bank branch all looks quiet and normal, while the robbery takes place inside, out of view, they report back to HQ that everything is OK.
This financial system (Fractional Reserve Banking) never disappoints in its motives are to allow banks to steal from the people. Remember “too big to fail” was in fact a legitimate strategy of bank CEOs (post Glass Stegal) to expand and leverage their balance sheets, take on more risk to make those gazillions in bonuses, knowing that when something went wrong governments couldn’t let them fail and would once again it would fall to the tax payer who already lost trillions of value in pensions, savings and jobs, to put money back into the pockets of revolting bankers.
Greed & Fear
When Fear and Greed are the prominent behaviours that run a financial system it will always mean the resources and wealth will once again continue to be polarised into the hands of the few, as we return to serfdom post 1349 where powerful bankers can move price at a whim, especially given BTC small MktCap.
Here is a reminder of the sculduggery that ensued.
12th September 2017 Jamie Dimon mentions: “Bitcoin is a fraud” the impact of which pushed prices down 24% on his continued comments “its worse than tulip bulbs. It wont end well. Someone is going to get killed” apparently. Harsh words with the sole purpose aimed to spook the market and create fear, which worked very well as prices fell J P Morgan through its European business purchased 19000 BTC. But we cannot be surprised as JPM bank under its CEO has paid billions in fines to Regulators and for $264m Chinese ‘princlings’ relating to bribery to win Chinese business in Asia.
Jan 24th 2018 George Soros renowned for attacking sterling to make a quick $1billion says “Bitcoin is a bubble” mentioning Bitcoin is too volatile and exactly why through his various vehicles he started buying it. At the very same time his industry colleagues Seth Klarman at Baupost Group deemed Bitcoin a ‘tulip bubble for the digital age’ and Ray Dalio founder at Bridgewater on CNBC called Bitcoin ‘a bubble’. These net effect of these and other comments pushed BTC prices down 44%, and this is exactly why Soros loves Bitcoin but makes out he hates it! These kinds of margins are unheard of in traditional capital markets and the small Market Cap and fixed supply makes it far easier to manipulate price, making it the perfect asset class for investment bankers.
Enter Dr Doom aka Nouriel Roubini says the day before 6th Feb saying “Bitcoin will go to zero” having already accused exchanges of wash trading. Then Warren Buffet told CNBC again “crypto currencies will come to a bad ending” and Carl Icahn the LBO activist and agitator said “Cryptocurrencies are ridiculous” but the best is yet to come.
Not to be left out Blackrock who have warned against crypto then decides they like crypto and want to bring out an ETFs and make a move into Custody. Then on 16th July their comments on crypto push a small rally, yet months earlier warned against crypto. No doubt mixed messages coordinated buy trading desks that buy the dip and go long.
The most infamous quote goes to Goldman Sachs 7th Feb 2018
“Most cryptocurrencies will go to zero” comparing Bitcoin to the Internet crash of the 1990s, another 27% price fall wiping $500billion of the entire value of the crypto economy prompting another sell-off as prices free fall below $6000.
Then we have the — Will Goldman Sachs open an OTC trade desk?, one minute yes and then the formal announcement of ‘No’ that again spooked the market BTC dropping $1000 in minutes, while secretly investing $400m in software and a trading desk. Then at the same time funding Circle to buy Poloniex the crypto exchange.
A concerted effort as Bitcoin reached its $19000 high to put fear into the retail buyers knowing they would sell and take their losses, forcing them from the market probably never to return. A constant attack and shorting BTC from Q1 2018 has resulted in $3200 low in December 2018. With no changes in fundamentals of BTC other than probing the fragile minds of early retail investors where they knew too well that any hint of collapse they would run for the hills and they could make extraordinary gains from panic they created.
The biggest heist to steal from the people in decades…
2018 will go down as one of the biggest ‘daylight’ robberies in history. This is the ultimate conspiracy but the evidence is visible to all on this thing called a Bitcoin Blockchain, a place where all evidence of misdemeanours are recorded on an immutable distributed ledger for future generations to see.
The evidence of market collusion is compelling, where information manipulation, the truth and lies was engineered to spread fear through front desks “Blue-Horseshoe” signalling the sending out of fake news to buy the dip through back doors. And yes this is apparently legal for a super class of investment bankers that are untouchable it seems, as they run institutions that offers ‘jobs for the boys’ when politicians and civil servants who wrote them, are later employed to help them ignore the rules and navigate around them when eventually surplus to government requirements.
So the facade continues into 2019 as the bankers, financial institutions and hedge funds would have you believe they hate crypto while they see huge potential, not only accumulating vast amounts of BTC through various trading vehicles and desks claiming Bitcoin and crypto wont last, they are stealing the ‘peoples currency’ right before our eyes. But this time rather than creating and mis-selling financial products sold to people that didn’t understand them, banks have upped their game knowing the retail crowd we naive at best and could be easily spooked.
We of course know where this ends. Banks bet with our money and don’t mind if they lose it as there is no accountability. Knowing there is more where that came from as central banks merely create it and give it to them to leverage and gamble. The very system Bitcoin was designed to replace.
Will stockpiling all this BTC end well? Do they care? Not at all, they only see BTC as a mechanism to make money and now most BTC is owned by ‘Satans Helper’ which gives the banks the opportunity to control price, something Wall Street always tries to do with every commodity and asset class, and another reason why the US economy is on the verge of collapse as the next financial crisis approaches.
Bankers cannot help themselves and nobody stops them. A number of US presidents Nixon (Bretton Woods), Clinton (Glass Stegal) et al have created the perfect storm removing essential legislation that was to keep the banks in check, ensuring they could not take financial alchemy too far, but no, they continue unabated destroying the value of currency itself.
And now they have stolen the Peoples Currency — Bitcoin.
We awaiting the inevitable PUMP.
If bankers are true to form they will pump Bitcoin as they buy the dip at $3200 (at the time of writing) and push it to new highs. But this will not be the only driving force to Bitcoins 2019 price moves.
There is economic unrest everywhere with tariff driven trade wars between the US and China, the Brexit fiasco and civil unrest in France. An economic crisis is looming which is starting with a recession where the signs are already emerging for all to see.
All asset classes are down, the S&P lost $750billion in a matter of hours last week (more than the entire losses of Bitcoin), property prices are starting to fall (illiquid assets are at stand still), retail numbers are down, central banks are now pushing the inflation agenda to give them an excuse to raise interest rates, which they know will hurt the small guys and will push the people further towards decades of serfdom.
Will crypto be the goto Safe Haven or have these bridges already been burned. But then retail buyers that got hurt by the banks are actually few compared to 2008 and there is an entirely new market for new adopters to seek crypto comforts as their fiat currencies buy less and less in real terms, as wages haven’t kept pace over 70% years with rising costs of living.
Other dark forces at work in Bitcoin world
Is there a sting in the tail for banks, are the Bitcoin miners pissed off because now profits on Mining (running the Bitcoin network) have all but gone at these price levels. Will they seek revenge on the banks by dumping large quantities of BTC? The rumours of Ira Kleiman’s wallet apparently containing 1.1m BTC (although we can find evidence of only 300k) are supported by other rumours of two more wallets with 1m BTC, where the excitement across OTC desks is parcels of 500k BTC with Sell Orders are being touted.
Will Craig Wright win his dispute with the Kleiman Family or does this matter at all. Are there many forces trying to bring Bitcoin down in response to the banks increasingly dominant position over minted supply? Are the miners trapped in a zero sum game with 40% of capacity already withdrawing. Or are banks buying into mining pools knowing prices will recover. Or during 2019 will 2m plus BTC hits markets further depressing prices unless new adoption can absorb new supply. Or is continued forking of Bitcoin delivering increasingly killer blows with BCH ABC and SV, with SV technically better it seems although larger faster emptier blocks, who knows but it is not helping.
Then there is the unresolved Tether situation where supply is not confirmed, and when USDT was issued was there any US dollar backing it? And was this mechanism used to put pressure on Bitcoin prices where there seems to be an arrangement with Bitfinex the subject of an ongoing investigations, with Coinbase pushing the message to retail.
It is further claimed by some that Tether via Bitfinex is being used to keep BTC prices high and manipulated prices with other concerns remain Tether allows ‘double spend’ a reason for concern as Tether issues more coins that should be backed one to one with US Dollar.
It is noted of course that bankers have moved from Wall Street into crypto a clear sign they feel there is money to be made, and others appear as Advisors and on boards of the crypto unicorns that are emerging. Coinbase and Ripple are examples and there remains concerns over the both business models by the crypto community, with BCH added to Coinbase Wallets last Xmas without announcement at a time when Bitcoin was pumping. It is clear some people made a lot of money from the hard fork, and Bitcoin was again the loser. And concerns remain about Bitmain as it closes in on 51% hashing.
Bitcoin is now firmly on the Institutional radar as a separate asset class. Will Bitcoin go to zero, of course not, the banks wont allow it now they have their teeth into this market. Will BTC continue to pump in 2019 is not the question. The real question is when the next Bitcoin Bulls will emerge and this is once again linked to geo politics, what the bankers will do and the fall out from the next recession which arrived although the central banks refuse to call this.
“Ignorance is tested” — watch out for the next set of Wall Street CEO’s and luminaries talking Bitcoin up from a position months earlier of decrying it, as this will be a sure sign something is about to happen, especially new entrants offering ETF, Crypto Custody and other services.
Don’t judge by what they say, judge by the actions they take….
Author: © Nick Ayton December 2018