Who manipulates the cryptocurrency market and how

    Манипуляции на рынке криптовалют
    Cryptocurrency market manipulations

    Today we will talk about bitcoin futures, crypto derivatives, margin trading, and everything It is not directly related to bitcoin, but without which we can not imagine the cryptocurrency market.

    How did this come about and is there a real threat to bitcoin? We will understand everything in this article.

    Actual trading volumes

    Манипуляция ценой биткоина
    Bitcoin price manipulation

    Vitalik Buterin wanted to buy Hell as much as possible. Then he was beautifully replaced by the head of Binance Changpeng Zhao , who said that if it were not for exchanges, then where would the industry take money. And here he, of course, is right. But, what is being traded on cryptocurrency exchanges?

    In our last final video, we talked about the new metric on the portal CoinMarketKap , according to which, the liquidity on the cryptocurrency market is only 0.2%:

    [ 19459018]
    Cryptocurrency Exchange Liquidity

    And now let's take a look at the numbers a little more. We take the announced trading volume on CoinMarketCap and look at BitMEX - it is $ 3.525 billion:

    Объем торгов на BitMEX 
    Trading volume on BitMEX

    And if you scroll down, then Binance has a little more than $ 1.192 billion:

    Объем торгов на Binance
    Trading volume on Binance

    [19459007 ]

    Next, we open another portal where real trading volumes on the cryptocurrency market are presented:

    Реальные объемы торгов 
    Real trading volumes

    [19459007 ]

    And there we see as much as $ 444 million per bit oinu on all platforms.

    It is clear that most cryptocurrency exchanges increase trading volumes in order to attract traders. But we specifically took BitMEX and Binance, which seem to have no need to falsify anything. What then do they trade with if it has nothing to do with bitcoin ?

    The answer suggests itself - by air.

    But actually we are talking about cryptodivers. These are all those things that are called Bitcoin futures, and in fact nothing more than a bet on the price of the first cryptocurrency. They do not have real security, but they are traded with a large leverage, which allows you to go broke in just one deal.

    Why go broke and not get rich? Because there is too little liquidity in the market, and therefore a large player can become a short position in futures with a large leverage and at the same time arrange a sale on the spot market in order to bring down the price. By the way, a similar trick can be turned in the opposite direction: you just open a long and arrange a pump bitcoin. But this is suitable only for a grainier, and small traders can try to catch such movements of bitcoin, but you need to understand that in this model of the market they are at the very bottom of the food chain.

    And if bitcoin futures are just evil, then there is a big problem. It's about regulated Bitcoin futures.

    The danger of Bakkt

    Криптовалюты на Bakkt 
    Cryptocurrencies on Bakkt

    Again we have to go back and remember a story from our other video , where they talked about the impact of CME futures on the price of bitcoin:

    CME Futures

    This is a large market for regulated crypto derivatives that has been approved by the US Commodity Futures Trading Commission. And as we said in that video, with the filing of the US Presidential Administration, Donald Trump, this trading instrument was given the green light in order to collapse the Bitcoin market.

    It is impossible to prove this, but purely theoretically, with the advent of CME futures, large hedge funds got the legal opportunity to enter the bitcoin market and profit from trading . And even if the exchange itself denies everything, well, what else should they say? What is our goal to ruin all of you? It is clear that we will never hear such a recognition.

    And now, regulated bitcoin futures with the physical supply of cryptocurrency have appeared on the market. That is, these are not price bets; they offer the possibility of real bitcoin trading . And first, at Bakkt there were high hopes that they would send us to the native by raising money from the stock market. Then they were laughed at because of small trading volumes. Now Bakkt is suspected of conspiring against bitcoin. Let's figure it out.

    So, for almost two weeks now, the daily trading volumes on Bakkt have exceeded $ 5 million, and the average daily volume is $ 9 million:


    And as it were Compared to what cryptocurrency exchanges claim, these numbers are still ridiculous. But let's recall the real trading volumes, which are only $ 444 million.

    An interesting video was released on the Chico Crypto channel, in which its author tried to uncover the secrets of the Bakkt Bitcoin repository and traced their connection with Donald himself Trump

    But all these are details, and if Bakkt is launched by the same company that owns the New York Stock Exchange, then obviously they are acting under the auspices of the US authorities and they have some kind of plan. And we are more than confident that Windows, Starbucks and Fidelity Investments are not just their partners, but the missing pieces of this puzzle.


    Ситуация на рынке криптовалют 
    Cryptocurrency market situation

    Another news: Bakkt is already testing its application for ] micropayments in cryptocurrencies . First it will be Bitcoin, for which they promise to sell coffee at Starbucks, Windows will probably help with the development, well, and Fidelity is another large warehouse for bitcoins that companies and institutional investors decide to buy. That is, they will probably also be given access to this application, which should be expected in mid-2020.

    And if we return to the investigation of Chico Crypto, then the Bakkt bitcoin depository is that black hole, from which it is completely unclear how to pick up the cryptocurrency, that is, it works only in one direction. And then we will be offered a universal platform, if you want to trade, if you want to go, and if you want coffee at Starbucks, buy it. Why would you own private keys , give them to us and live for your pleasure.

    Here such a situation looms. What is the result? Whether we like the crypto derivatives market or not, we won’t be asked if it is needed or not. This is a tool for making money, for those who are willing to take risks. And until the authorities decide that it is time to put the crypto-exchanges in place, billions of dollars that are not directly related to bitcoin will rotate there. And this moment may come after the same Bakkt matures to that level of development in order to become the main cryptocurrency market. At least they have the financial, technical and political resources for this.

    How bad is this? Let's just say that you and I will not be asked again, nor will they be able, on the other hand, to force us to abandon private keys and own bitcoins independently. Just don’t get fooled by their ads and manage your money yourself.

    But there is also a relatively positive point. While China has unsuccessfully trying to stop cryptocurrency trading , the US decided to act on the principle: if you can’t win, then you need to lead. That is, they see an opportunity to benefit from this and are not going to introduce a total ban. Well, you and I need to be prepared to defend our rights so that their benefits do not interfere with our right to financial freedom.

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