The price of Bitcoin has fallen 72.9% of the value of the US dollar since the all-time high of the crypto asset ten months ago, and recently, Bitcoin has been trading at less than $19 thousand per unit. This week, two prominent crypto-market influencers discussed how governments can suppress the bitcoin markets by selling crypto assets. However, one individual noted that the odds of doing so are “in the 0%-1% range.”
‘Enough cuts in the system to suppress price’
The price of Bitcoin has fallen this week after the initial decline after the US Consumer Price Index (CPI) published last Tuesday which showed that inflation was higher than expected. Moreover, the cryptocurrency economy, in general, may see another downturn after the US Federal Reserve raised its benchmark bank rate.
Cryptographic Fear and Greed Index (CFGI) Offers Sentiments have declined from “fear” to “extreme fear” over the past day. Saturday, Bitcoin Analyst Willy Woo He posted a thread about the possibility of unlimited currency and derivatives markets suppressing bitcoin prices.
The routeTitled “A Dolls Guide to Selling 42 Million .” BTC“On How to Create the First Arthur Hayes”BTC A casino used by real people, who trade billions daily.” Wu noted, “Arthur opened the way for us to sell 10 BTC Even when we only had 1 BTC We just need people to take the other side of our bet,” Wu added.
After describing how Hayes built Bitmex in his own way, Woo discusses how CME Group, the world’s largest derivatives exchange, launched ” BTC Casino where you can play with US dollars.
“Wall Street hedge funds loved it,” Woo tweeted. What are the limits of sale? BTC Currently? Unlimited. Unlimited Fiat.” More details Woo it BTC The market capitalization is $0.37 trillion while the US dollar is around $22 trillion.
The analyst added that $1.1 trillion was created over the past year, and said the “theoretical short selling power with the order” is enormous and it’s “billions of BTC. Wu emphasized:
Woo isn’t the only one discussing things in this way, as a number of crypto proponents have said that the bitcoin derivatives markets and even exchange-traded funds (ETFs) can hurt BTCValues. This fear frightened Long before the introduction of the CME group BTC Futures markets in 2017.
After a few years, few studies shown It is possible for institutional investors to manipulate the price of Bitcoin. CME Group has exposure to countless brokerages around the world, and in August, CME bitcoin futures were exchanged in Biggest discount To set prices since deals started in 2017.
In November 2017, CME Group Chairman Emeritus Leo Melamed told Reuters reporters that bitcoin had become a “new asset class”. However, Melamed also said that it was a “very important step in the history of Bitcoin” and that the CME Group would “regulate, make Bitcoin unruly, no more brutal.” Melamed further emphasized:
We’ll tame it into a regular kind of tool for trading with rules.
Alex Krüger says that shorting the price of Bitcoin until people permanently lose interest has a low probability
On Saturday, economist, merchant and businessman Alex Krueger He tweeted: “Governments can simply stop bitcoin.” Kroger too added How is that possible. “Just short. keep it under $10,000 for a long time, [and] Watching most people permanently lose interest. You don’t have to worry about 51% of the attacks.” The economist also added that his statement was a copy-and-paste of the same phrase He said in 2019, and that the probability of this kind of thing happening is relatively low.
“Could that happen?” Krueger asked. “Sure I can, I covered the mechanics in the original thread. Is that possible? I’ll put the odds in the 0%-1% range.” Krueger also Referred Willy Woo’s Twitter thread and when someone replied that it “was more pointless than just banning PoW under climate control rhetoric,” Krüger replied: “100%.”
In a Woo thread on Twitter, some people said that the removal BTC From the spot market exchanges it was the best way forward. At the time of writing this report, cipher exchange data From cryptoquant.com indicates that there are approximately 2.3 million BTC Stored on central trading platforms.
“[Bitcoin] Low price means more people are buying [and] “Withdraw them from the exchanges,” said Dr. Krypto Tony. “This makes BTC More expensive. They can’t manipulate it like silver [and] Gold because people have self custody. Limited BTC It makes it go up in price as more people buy and hold individually. Takes [it] of exchanges.”
What do you think of the discussion about bitcoin shorting and governments cracking down on the bitcoin price? Tell us what you think about it in the comments section below.
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