Now that everyone has had a few days to calm down after the major market correction this week, I wanted to take some time to explain exactly what happened and why. For those who look at the crypto world through rose colored glasses, you may not like this article, but I suggest you read it with an open mind to realize how manipulated these markets truly are. Literally nothing about them is natural.
For starters, let’s go back a few weeks. The futures market first opened at the CBOE to less than expected volume. The big shorts never showed up as people had feared, and the price of Bitcoin had a slight rise, but nothing too big. All was right in the crypto world.
At this point, Bitfinex started printing Tethers at a rate they had never printed them before. Over $150 million in one week. Normally this would lead to a huge jump in Bitcoin prices as it had done in the past. But this time was different, the price barely moved $1K, which in Bitcoin terms is just normal daily movement. So the week leading up to the correction, Bitfinex printed another $200 million in Tethers. This should have surely pushed the price above $20K which was their goal all along. But there was huge resistance at $20K and nothing would push the price past it. The manipulators realized Bitcoin was not going to pass $20K in the near future, so they started to coming up with a plan for the big whales to cash out some profits they had accumulated since they had been artificially pumping the BTC price since it was $6K.
Enter Charlie Lee. The man who seems to always have the inside info but then claims he doesn’t. Charlie Lee knew of the China fud coming this past fall that also created a huge correction in the market. However, this time he said that his delicate sensibilities were being tormented by internet trolls on Twitter who were attacking him for any comment he made about Litecoin. He claimed he no longer wanted to influence the market, despite the fact he had just come off a media tour promoting and boosting the price of Litecoin on everything from CNBC to Glen Beck. But if we are to believe Charlie, after his media tour to pump Litecoin, he had a change of heart and now wanted to be the most objective and unbiased man in Crypto, so he sold all his Litecoin…..right at the top.
Charlie Lee is an insider and has always traded and made moves based on his inside connections. Charlie knew the whales were planning to cash out their profits from this year soon, so he decided to do the same, but under the guise of some phony altruistic reason. When a whale like Charile sells, you should too. On the way to the moon, all the honest guys get left here on Earth. But Charlie also knew something else was coming…..Bitcoin Cash.
The Bitcoin cash robot that ruined Christmas. Then came Coinbase, which announced early that they would be selling and trading Bitcoin Cash. With the whales behind Bitcoin stalled out, the boys behind Bitcoin Cash decided to have a little pump of their own. They had their trading bot all set up to pump the price to the moon, but the best laid plans of mice and bots often goes awry, as it did on the launch of Bitcoin Cash. Within one minute of launch, orders were pouring in for Bitcoin Cash for $9K. Obviously, no human would be flooding the books with orders 3X above the current market value only a minute after release. This was clearly a bot meant to boost the price, however it went out of control since it was not programmed to handle an empty order book and exposed itself. This is why Coinbase shut down BCH trading for the day. They knew a bot on their exchange had been exposed and they needed to shut everything down and remove the evidence, which they did.
The big cash out. With the Bitcoin whales unable to boost Bitcoin past $20K and the out of control bot that failed to pump Bitcoin cash, it was now the peak, things would go no higher as the whales had run out of tricks. So the plan was to start selling. And yes, it was the whales selling. No retail investors can even get $1K out of their little accounts without running into huge issues with verification and other issues. So no, this was the giant whales slowly selling off their positions and taking the profits they had built up over the year.
But these guys aren’t stupid, they knew they couldn’t let the prices crash to the bottom. The price needed to hit a real support level that made sense on the charts. So as the price was falling, orders for as many as 1K bitcoins started showing up on Bitfinex. At that time, that was a $12 million order. So somebody was working VERY hard to make sure that the price never broke $12K as that was a key indicator. If it broke that level on the charts, it would probably fall another $5K and they would not be able to control it anymore. But their plan worked. The $12 million spoof orders worked and the price stabilized. And as a little side note, anyone throwing around $12 million on a crypto exchange is directly involved with the owners, they are not just some random investors.
Let’s do it again sometime! But don’t worry. The boys behind all this have plans to do it again next year. They just needed to cash out some profits and what better time than during the peak they themselves had created. So sleep tight this Holiday season because as soon as it’s over you will hear the bulls coming in the distance and we can do this all over again in the new year.