Since the crypto-asset’s all-time high ten months ago, Bitcoin has fallen 72.9% against the USD and was recently trading below $19,000 per unit. This week, two prominent crypto market influencers have been discussing how governments can stifle bitcoin markets by shorting the crypto asset. However, one of the individuals stated that the chances of doing so were “in the 0%-1% range”.
“Enough shorts in the system to suppress prices.”
Bitcoin prices fell this week following an initial decline after the US Consumer Price Index (CPI) published last Tuesday showed that inflation was higher than expected. Additionally, the crypto economy, as a whole, could see another leg up after the US Federal Reserve raised its benchmark bank rate.
The sentiment of the Crypto Fear and Greed Index (CFGI) has dropped from “Fear” to “High Fear” in the last day. Saturday, a bitcoin analyst Willie W Published a thread about the possibility of unlimited fiat and derivatives markets suppressing bitcoin prices.
of threadThe so-called “Dummy’s Guide to Selling 42 Million BTC” tells how Arthur Hayes created the first “billion-a-day BTC casino used by real people.” “Arthur gloriously paved the way for us to sell 10 BTC even when we only had 1 BTC – we just needed people to take the other side of our bet,” added Woo.
After explaining how Hayes created BitMex in his own fashion, Wu discussed how the world’s largest derivatives exchange, “You can open a BTC casino where you can play and earn dollars.
A WoW Twitter thread notes “Wall Street hedge funds love that. “What’s the limit on selling BTC now? Unlimited. Fiat is unlimited.” Woo also detailed that BTC had a market cap of 0.37 trillion and the US dollar was around $22 trillion.
The analyst added that 1.1 trillion dollars were created last year, and the “theoretical scarcity power in fiat” is very large and “billions of BTC”. Woo tension
BTC doesn’t have to be killed, it just needs enough shorts in the system to suppress value. Without a large market cap, BTC cannot make a global impact.
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In this sense, Wo is not the only person who can affect the price of BTC. There are many crypto-promoters that can affect the price of BTC, from Bitcoin derivatives markets and even exchange-traded funds (ETFs). This fear scared investors before the CME Group introduced BTC futures markets in 2017.
Years later, a few studies indicated that institutional investors could take advantage of Bitcoin’s value. CME Group has exposure to countless brokerage firms around the world and this August CME bitcoin futures will The biggest discount In the year To identify prices since the start of transactions in 2017.
In the year In November 2017, CME Group Chairman Leo Melamed told Reuters reporters that bitcoin was becoming a “new asset class.” However, Melamed said it was “a very important step in the history of bitcoin” and that the CME group would “take control, prevent bitcoin from going wild.” Melamed further emphasized:
We will direct you to the standard type of trading instrument with rules.
Alex Kruger says there is a low probability of a Bitcoin price manipulation to cause people to lose interest forever.
Saturday, economist, businessman and entrepreneur Alex Kruger “Governments can easily freeze Bitcoin,” he tweeted. Krüger more Added How could that be? “Short. Keep it under $10,000 for the long term.” [and] Watch as many people permanently lose interest. No need to worry about 51% attacks. The economist added that his statement was a copy and paste of his statement. he said. In the year It’s 2019 and the chances of something like this happening are very low.
“could be?” Kruger asked. “Of course I can, I covered the mechanics in the main thread. Is it possible? I put the odds in the 0%-1% range. Krueger as well mentioned Willie Woo’s Twitter thread and one person replied, “It’s very possible to just ban PoW in climate control talks,” Kruger said. They replied“100%”
On Woo’s Twitter thread, some people said that removing BTC from spot market exchanges is the best way to go. As of this writing, crypto exchange data from cryptoquant.com indicates that about 2.3 million BTC have been stored on central trading platforms.
“[Bitcoin] A lower price means more people will buy. [and] Avoiding exchanges,” said Dr. Crypto Tony. This makes BTC more expensive. You can’t use it as money. [and] Gold is because people have self-governance. Finite BTC will increase in value as more people buy and hold it individually. Take it [it] Out of Exchange”
What do you think about the discussion about shorting Bitcoin and governments suppressing the value of Bitcoin? Let us know what you think about this in the comments section below.
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