And no it is not to buy more crypto although, if you are in that position, it could be a good idea.
There is no doubt that taking the pain of the recent price drop is tough. This bear is ruthless. That cannot be denied.
However, it is understanding of market action that will lead you to be very excited about what it taking place. This drop is actually good news.
As I write this, the marketcap of the crypto world is just shy of $199B. That is all. The entire market is worth just not a ton more than Jeff Bezos. One individual is worth almost what the entire sector is.
In fact, the total marketcap is not what matters. The important number is $100B. This is what the total of all the Bitcoin in the world is. The reason why this is what matters is because everyone knows the alt-coins follow Bitcoin. Hence, this is where the focus is.
The focus? By whom?
The answer to that is in the market action, or should I say, market manipulation. The focus is by those manipulating the crypto currency market. This is a rigged game and Wall Street is at the controls.
Gold and the currency markets have been manipulated over the years by these financial barons and those are sectors that are worth $7T+. Manipulating a measly $100B market is nothing to them.
Every major firm on Wall Street is gearing up for crypto by opening a trading desk. One of the reasons is because they want to be involved in the STO game. This is going to be huge business for the Wall Street firms. However, that is not the bulk of it. The IPO market is nothing compared to the daily volume these firms do simple executing transactions and establishing markets. This is what Wall Street is after.
The bandits are loading up on crypto, you can take that to the bank. Many articles are floating around that show the OTC market is where they are playing. This is where they are doing their buying. The truth is Wall Street knows what is taking place and they are not going to be left out. For all his disclaimers, Jamie Dimon is well aware that his bank is loading up on Bitcoin (along with other tokens I am sure).
Understanding their tactics shows exactly what is taking place.
The first thing they do is start spreading the FUD. Anyone who paid any attention to crypto knows this. It is consistent, excessive, and resilient. The market got whacked again within a day of the head of the IMF saying that countries should consider their own cryptocurrency. Oh no. Who is gong to want Bitcoin if these countries create their own?
Can you see how devious they are with their FUD?
Another thing they like to do is to build a wall of buys when they are trying to take things down. Have you ever put in a market order for something only to get it filled a number of points lower than what was listed? There were plenty of people selling large chunks at the time of submission, far bigger than what you were buying but it filled much lower. What gives?
I will tell you what gives: those buys orders were bogus. This is a favorite to make people think there is activity there and buy support exist. While this could bring in a few buyers, most of the time, it lures the sellers further and further down. Without real buy support, one ends up chasing bids moving lower until frustration sets in and a very low sell price is established.. Presto, you have a deal, far below what was initially listed.
There are a ton of other tactics they use to manipulate prices. My point is with the FUD and some basic manipulation of the buy/sell walls on the handful of major exchanges that exist, they can really start to move the pricing around.
We also see a two-fold purpose in their buying. The first is to have some coins to sell as part of their manipulation. The second reason, and more importantly, is they want to be stocked up when they unleash the bulls. They know big moves are going to come and they are going to be well positioned.
The people are rats; scoundrels; snakes. Having them involved makes me want to throw up. But they are also heavy hitters. When they want to move stuff, they have the ability.
We know there is going to come a time when the SEC rules on Bitcoin ETFs. This is probably the dam breaking moment that will send the bulls running. Wall Street knows this. At that time, they will be able to open up their trading desks to all those big money accounts. Forget buying 10 or 20 Bitcoin, this areas will get into the thousands of Bitcoins per transaction. Their orders are not in the thousands but, rather, millions.
So why should hodlers be happy about this?
Simple. Things will turn in a big way. These entities are not interesting in getting a double on their money. Taking $5K BTC and running it to $10K is not what they are after. It is also not a story that is going to sell with their clients. Remember, they spent the better part of a year trashing the entire industry. How are they going to reverse that?
The way to do that is simply FOMO. They need to send cryptocurrency on a tear to get people interested. Again, doubles do not make headlines nor separate clients from massive amounts of money. It is going to take a heated run to do that.
And that, in my estimation, is exactly what they are going to do. Cryptocurrency is starting to receive a lot of recognition. This is not something that is going to be small. The banks cannot hide from it nor suppress. That only option is to manipulate it so they profit from it.
This means buy low and sell higher....much higher.
Some might object to this manipulation and the condoning of it. It is not so much condoning as accepting this is how these entities work. With a market cap of $20T or $30T, things might be different. But when the total market cap of BTC is $100B, that means it can be totally manipulated with a few billion. That is nothing to the banking industry.
The timing is starting to line up. We know from the filings that these entities are taking it on the lip as their trading departments suffer as the stock market gets long in the tooth. This created a great deal of uncertainty. At the same time, I believe the smart money is already out of the market. The Wall Street firms and their close cohorts are on the sidelines. They are flush with cash and going to watch as the equities markets (along with others) collapse. This is the boom/bust cycle they always run.
For this reason, I think they are going to look for some massive profits in the crypto space. It is virgin territory for them. To achieve this end, they need a feeding frenzy. Nothing sets that off like some good old-fashioned FOMO.
I have no idea when this bear will go into hibernation but I would suggest watching the SEC ruling on the ETF applications. That said, what I can tell you is that this prolonged bear means a major blast off. Wall Street is the one running the show through their manipulation. This is small potatoes for them. The good news, to profit the way they want, they need to make all existing crypto hodlers a great return. If you look at the all-time highs, those are numbers that will be surpassed by the vulture crowd. They have enough money to move it well beyond that.
The major insight is not knowing the game is rigged but knowing how it is done so as to partake in it. I don't know what level is enough for them to start the frenzy. With each leg down, we are getting closer. There will come a point where they decide to flip the switch.
It is imperative to not become one of the weak hands flushed out. That is why hodlers should be very happy about this drop. The weak hands are being cleared out. This is part of the manipulation. Those who bought at higher levels cannot take the pain. Hence, the vultures just got crypto on sale. That is what their goal is.
Those of us who watch Steem closely know what we have here. I already saw a couple of decent sized accounts mention they are getting ready to enter buying mode. These are people with plenty of STEEM (100K+) and they are looking at these prices as a gift. While not everyone is in a position to add to their stake, it is comforting to know that some of the more dedicated Steemians with the resources to do it are going to establish buying pressure.
There comes a point where the prices are just too attractive to these people.
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