ledgerx651Member
Posts: 4 · Reputation: 233
#1Jan 6, 2022, 07:51 PM
I've been thinking about why Bitcoin prices have been so stable lately, and honestly, it's puzzling. There’s this idea that whales are the ones doing all the selling, but I’m not buying it. Even when things got rough before, the hardcore hodlers held tight. So I did a little research, and I’m starting to think Wall Street is actually manipulating the price down.
The whole system seems to rely on using our Bitcoin to operate.
The real issue is all the easy liquidity floating around. When users park their Bitcoin on exchanges or in DeFi apps for those tiny yields, they're creating a huge supply of coins like 400,000 to 500,000 BTC from what I've found. And that’s what they use against us.
Here’s what I think is going down:
They kick things off by opening a big short position in the futures market, which acts like a bomb to push prices down a bit.
This drop then wipes out a bunch of highly leveraged retail traders, you know, the ones using too much debt. This sets off a chain reaction of selling that pushes the price even lower.
Next up, those smart arbitrage funds swoop in, borrowing BTC from our yield pools and selling it instantly on the spot market for a quick profit.
Get how that plays out? Our simple choice to earn a little yield is giving them the supply they need to keep dumping and capping the price. We’re literally giving them the ammo to shoot down the price.
But hey, there’s a light at the end of the tunnel! This price suppression can’t last forever. Just like you can’t hold back a dam with your bare hands, they can’t keep this up indefinitely.