We have long been accustomed to manipulations in the cryptocurrency market. That's just usually behind them are large investors who seek to get additional profit. However, Donald Trump, along with the US government, unexpectedly became the main manipulator of recent years.
How Trump brought Bitcoin down
A sensational statement was made by Christopher Giancarlo, who previously served as head of the Commodity Derivatives Commission (CFTC). He told CoinDesk that the U.S. government set out to burst the Bitcoin bubble, which began to form in 2017. To achieve this goal, it was decided to launch bitcoin futures on the Chicago Mercantile Exchange (CME Group).
According to Giancarlo, the US Treasury, SEC and CFTC, as well as the National Economic Council took part in this “scam”. As we recall, their plan worked: with $ 20,000, bitcoin began to plummet immediately after the launch of futures, and it has not been possible to return to its previous levels until now. But why did the US government need to “blow off” bitcoin?
Reasons for US intervention in the cryptocurrency market
Giancarlo said that authorities noticed a growing bubble in the cryptocurrency market long before the end of 2017. They realized that the consequences of the explosion of such a bubble would be extremely sad if it was allowed to swell to the maximum extent.
Moreover, the government considered the cryptocurrency bubble to be the first real threat since the 2008 crisis. Therefore, it was decided to burst this bubble in advance, minimizing potential damage.
The only question is why the US authorities needed to prevent the bubble from expanding. At its peak, market capitalization exceeded $ 800 billion, but on a global scale, this figure is not capable of influencing financial stability.
US intervention suggests that the government foresaw much more serious market growth. In order for a bubble explosion to seriously shake the economy, its volume must exceed at least several trillion dollars – could the market grow to such volumes if there were no collapse?
This whole situation makes us once again think about the role of ordinary investors in the market, in the hands of which there is no control. Here, once again, it becomes clear that the only right investment strategy is to buy and not sell until the price reaches the levels you have outlined. Otherwise, all your investments can be washed away by the next game of manipulators.
Publication date 10/24/2019
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