Over the weekend crypto crashed awfully. Since than crypto youtube is flooded with explanations and as expected most channels remain long term bullish about crypto.
The main explanations given: oil prices war between Russia and the Saudi Kingdom, The impact of the corona virus and manipulation.
Well - manipulation is all over the crypto markets and sudden sell offs and pumps happen all the time. Nothing new about that. It might be true that there are some big bitcoin holders that slowly get rid of all their bitcoin by playing the market in pump and dump schemes. Trading volumes suggest that this is taking place.
Interesting is the call on the corona virus and the oil price. It is contradictory. Bitcoin and crypto is supposed to be immune from trends in traditional trading (regular markets) and what we see long term is that bitcoin despite of that follows the trends of these traditional markets. What does this mean? First of all that means Bitcoin is far from being a safe haven and is not a reliable storage of value. We said this all along:
Trade - thou shalt not hoddle!
There is a reason that it works like this. Big money (the so called smart money) works on a hit and run basis. When billions are flushing out of the market within hours, you can be sure this is not retail Joe Sixpack calling the shots. The same incrowd running the schemes on silver, gold and stocks also run the bitcoin game.
The oil price dump is a systemic risk for the traditional markets and a plague for taxpayers. It drains liquidity and banks are to call upon the government for bailouts again. Welcome to derivatives. Excessive risks are taken and huge profits disappear into private hands, leaving the full extend of the risks with the public. Much more so than in 2008. What does the public pay for? The profits already taken out! That is the cynical truth.
We definitely need a new financial system. Even if the bubble will be saved for a next couple of months or years. The incentive to run malpractice is simply to big. The basis: bad credit. When you issue a loan you either insure it or sell it. No incentive to check customers, no incentive to practice due diligence.
Despite the massive argumentation for bitcoin constituting something like "real value", we do not believe that for a second. That' s why we keep trading. We believe it is following regular market patterns, with higher volatility, but regular. No such thing as digital gold. (the only digital gold out there is the paper gold market - which is also fools gold. The first thing that has no value when the system really crashes are these paper titles on real gold. The only real gold is physical gold, our oldest form of real money...)
<br /><center><hr/><em>Posted from my blog with <a href='https://wordpress.org/plugins/steempress/'>SteemPress</a> : https://cryptmove.com/2020/03/10/blame-game/ </em><hr/></center>