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Beware Of The Campaign Of FUD By Bitcoin's Newest Whales

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reonarudo
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https://twitter.com/ScottMinerd/status/1395130420489031683

Scott Minerd is the Chief Investment Officer of Guggenheim Investment, a giant in investment and asset management. Guggenheim invested $500 million in Bitcoin in the beginning of this year. Minerd has been flip flopping in his public statements on Bitcoin, with predictions of its future price ranging from $400,000 to never reaching higher than $40,000.

Now he's comparing crypto to Tulipmania.

We wanted institutions to come into the space and now we've got them. They entered with a fanfare, drove up the prices to all-time highs many multiples above the previous ones, and then distributed their bags in a classic Wyckoff distribution. Now they're trash talking Bitcoin and the rest of the space, most likely to induce a proper capitulation to re-accumulate at a cheaper price.

Professional investors are sharks and their modus operandi is to use every trick in the book to separate retail from their money.

Source: https://www.lookintobitcoin.com/charts/stock-to-flow-model/

Take a look at that. Isn't it obvious that the price action of Bitcoin has been more volatile post the 2017 top than between the 2013 and 2017 tops? I think that's the result of institutions gaining access to a poorly regulated Wild West of a market ripe for manipulation.

I think we've seen the most of the crash in crypto prices. The price of Bitcoin seems to be stabilizing around the $40,000 mark after a brief wick to slightly under $30,000, which represents a 38% drawdown (not accounting for the wick).

The price may flounder sideways for a while and I wouldn't discount the possibility a renewed attempt at rug pulling. But the stock-to-flow mechanics cannot but relentlessly make the asset harder to earn and the sovereign debt problems will not go anywhere despite the economies of the world seeing an uptick of activity after the worst of the pandemic is over. Central banks are going to have to keep printing.

Posted Using LeoFinance Beta