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IPFS News Link • Bitcoin

"FTX Isn't The Canary In The Coal-Mine, FTX Is The Coal-Mine... & It Just Collapsed"

• https://www.zerohedge.com by SchiffGold.com

For weeks, the Bitcoin market has looked propped up by the whales, especially after the recent FTX disaster.

Bitcoin hodlers should strongly consider moving into gold, silver, or at least Ether.

Full disclosure, I have a complicated relationship with Crypto.

An Artificial Market

I have specifically avoided writing about Bitcoin despite having strong opinions on the subject. Bitcoin is a very hot topic, and most people have already made up their minds. In short, I think it has zero value but that argument has been made many times before so I couldn't add anything new to the conversation.

Full disclosure, I have been in the Crypto market since 2013 and am net positive. That said, given recent market events, I cannot sit by in good conscience without giving fair warning. This is not a Bitcoin is worthless analysis, this is a wake-up call to push people to ask what is keeping this market from imploding. FTX isn't the canary in the coal mine (that was Celsius, or one of the other firms that crashed this year). FTX is the coal mine, and it just collapsed.

I think the data shows that this market is being propped up by whales. If the dam breaks it could send markets crashing. Back on Oct 31, before anything happened with FTX, I texted a close friend:

My new theory is that the whales are not trying to pump the price anymore. Instead, they are trying to stabilize the price to win back institutional investors. I have never seen bitcoin price volatility so low over a 6 month stretch in 10 years. It just totally stopped moving after an epic collapse back in June. No bounce, no continuation, no nothing. Just super tight price range even while the stock market has continued falling.