Why and How is crypto manipulated
Crypto is a menace to the establishment but they will be unable to stop it.
That’s what I’m talking about so often and clearly reflects today: When bitcoin drops low, altcoins slowly decouple and go up
This has happened a few times before and I consider it could only be delayed if any of the following three scenarios come true:
1. An epic BTC bounce that’ll look so attractive that people will dump all their altcoins to ride the train back to 20k USD.
2. Capitulation, a swift and strong drop to put crypto into misery (risky).
3. Fear, Uncertainty, and Doubt (FUD) to weaken the whole crypto sentiment.
I talk about bitcoin manipulation, but what does that even mean and why am I saying it?
When altcoin prices start to go up while bitcoin remains flat or keep going down, there is a huge danger for the manipulative market makers. If this slips out of their reach, we could see a complete decoupling, meaning bitcoin price no longer dictates altcoin prices; BTC would then become just another crypto somewhere in the top 20s and the whole market would evolve naturally. This is my dream scenario.
That looks great, isn’t it? So why not let that happen?
Short answer: CONTROL
The biggest threat to any establishment is an environment they are unable to control. Like the internet, which is probably the most important human advancement that threatens centralized power so far.
The more diverse and successful blockchain-based projects we have, the harder it will be to control the crypto space. It is indeed obvious, yet very few people see it.
Their strategy has been to hold bitcoin artificially as the king, but a shackled one. They won’t let it shine. Imagine having a sports team comprised of very talented players that you keep on the bench and only send to the field the ones with average skills, the whole team would suffer. That is exactly what is happening with crypto right now.
We have amazing solutions with world-changing use cases, and they get ignored, while the narrative of bitcoin’s energy consumption is so over-discussed that even grandma has heard that “bitcoin destroys the planet”.
- The BOUNCE!
Going back to the scenarios I mentioned earlier, I would like to go in detail, starting with the “bounce” … We’ve all seen it before, a green candle ranging anywhere between $100 and $300 USD going up, then a brief consolidation period and finally an equally sized red candle to end up forming the now famous Bart Simpson pattern
This strategy has so far worked very well. The green candle rekindles hope in the hearts of crypto traders and moon sentiments and dreams of a new All-Time-High (ATH) come forth. Maybe we are finally going back to 20k! YES!
Sadly, it doesn’t work that way. Many traders sell the altcoins that so far have been it green in order to ride the bitcoin pump. After all altcoins go down due to mass selling, a dreaded red candle appears in the BTC chart and another chapter of depressive market begins. The result for the common folk is despair and this damage crypto in general.
Dumping bitcoin any further could be very dangerous, since it could trigger Capitulation which is a scenario where many traders finally give up and do a massive selloff driving the price deep down. So far, the lowest mark has been 2800 USD, at the time of the writing of this article, BTC is around 3400 USD which has been holding.
I’m not sure how the market will react, my guess would be a very depressive phase followed by a slow recovery led by the altcoins. So, the cycle starts again.
Since crypto became such a huge topic, a lot of establishment-friendly mainstream media jumped in the wagon of the “crypto news”. Poor written and even worse researched articles executed by incompetent fools who barely understand blockchain. They tend to share the same FUD piece (what a coincidence) which in most cases is wrong or exaggerated.
Thankfully this has lost strength in terms of impact. We can see the same effect with “shocking news” often reporting death and destruction over and over again to the point where people start to numb and become immune, not caring at all. In the end, we get used to almost everything.
What could happen?
If bitcoin loses its kingly spot, my guess is that they will try to install a new one in its place. While it is hard to manipulate a big market with many projects and teams, the control of the biggest player would make it easier. It’s not hard to perceive candidates, projects like Ripple that fundamentally stand against everything that crypto actually means and still getting praise nonetheless.
In the end, is it a lost cause?
NO! Even noticing all these points, I am still very positive and bullish because none of those tactics will endure. Eventually, we WILL start to witness success, see results and hear about revenues in the billions. The Blockchain revolution has barely even started. Soon we will have scalable solutions for future DApps (at least for our current standards, the requirements will rise). In other words, we are doing groundwork. Everybody talks about the dot-com bubble while totally ignoring how the internet reshaped EVERY aspect of our society and continues to do so. Crypto wouldn’t exist without the internet.
If you ever get confused by too many opinions or theories, then I suggest googling some references on the first cars, planes and also electricity; pay attention on how media reacted back then, how people behave in the wake of such technological advancements. Within our perspective, it’s absurd how things were BUT, crypto has that same battle still to be fought.
Technology cannot be stopped. Don’t get played, don’t lose hope. Stay amazed by all the work these excellent projects do.
💠 My site for the WAVES moonwalker node: https://moonwalkerspicks.com/
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