A new conspiracy theory has gripped Bitcoin this week.
Even as the king of cryptocurrencies finished its consolidating week with a huge $5 billion buying frenzy, frustration arose. BitMEX exchange members complained bitterly that the pre-scheduled downtime on the site coincided exactly with the huge BTC rally.
Is there any merit to this cryptocurrency conspiracy theory?
Examining the known facts does not give certainty. Exactly as the known maintenance hours for this global exchange began, large groups of sellers were driven from the market. But suddenly elusive Bitcoin bulls reemerged.
They brought their A-game to the battle and what is among the largest buying frenzies of cryptocurrencies in weeks erupted.
Bitcoin rose as high as $6,800 in only an hour. This 6% super-spike left BitMEX users stunned and furious. When the super-surge dust settled, Bitcoin’s market cap had risen by $5.2 billion versus the pre-rally hours.
The bears came back to play at that point, and the price retreated at least temporarily. There are analysts and cryptocurrency enthusiasts who smell a rat. If the Bitcoin whales wanted to make a move, this was their moment. The planet’s biggest BTC/USD exchange (daily volume measurement) was out of the mix. It provided a thinly traded market for the bulls, and no fair counter trades to stand in their way.
Was the Bitcoin Move A Conspiracy Theory, or Just A “Hit and Run?”
What makes this conspiracy theory plausible is the fact that analysts had called for lower lows in BTC. Even the CEO Arthur Hayes of BitMEX had just predicted a bottom in the $3k to $5k range.
Other technical analysts argue that there is no conspiracy theory. They attribute the huge move to a “hit and run” or “drive by shooting” on the buy stop orders that were visibly resting. This happens in the Fx markets all the time in thinly traded market conditions.
It leads investors to the question of fairness in the global digital assets markets. Sadly, it appears that even the cryptocurrency of the people has been coopted by the financial sharks. They were already running the currency, equities, bonds, futures, and derivatives markets in London, the U.S., Hong Kong, Singapore, Paris, and Tokyo. The Romans would warn Caveat Emptor – Let the buyer beware.
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