It’s been a rough couple of weeks, hasn’t it? Bitcoin briefly dipped below $60,000 on Monday following news that the defunct bitcoin exchange Mt. Gox will begin distributing around $9 billion worth of Bitcoin and Bitcoin Cash repayments starting in July.
Read on to explore the latest on Bitcoin’s price dip, and whether Wall Street might be secretly manipulating the market for a bargain buy-in.
Wall Street Dirty Play?
In a recent strategy session, Aaron from Altcoin Daily suggested that Wall Street investors are actively working to reduce Bitcoin’s price. According to him, these institutional players view current prices as too high for entry and are aiming to push the price down to around $40,000. This theory is based on the belief that Wall Street is using various tactics to influence a market correction.
But how are they doing it?
Historically, Bitcoin’s price has ranged from highs of $73,000 to lows of $55,000. Analysts noted that Wall Street aims to push Bitcoin’s price down from these highs to more attractive entry points for future investments.
The Dual Role of Bitcoin ETFs
The launch of Bitcoin ETFs, including those from major players like BlackRock, is seen as a double-edged sword. While these ETFs signify institutional acceptance, they might also be used strategically to lower Bitcoin’s price.
Peter Thiel’s Shift in Stance
Aaron also analyzed recent statements by former PayPal CEO Peter Thiel, a prominent investor and Bitcoin supporter. Thiel expressed skepticism about Bitcoin’s future growth, stating that he is not currently buying Bitcoin—a notable shift from his previously bullish stance.
Thiel had once championed Bitcoin as a revolutionary technology capable of challenging traditional financial systems. He now questions whether Bitcoin still holds the same potential, suggesting that the cryptocurrency may have been co-opted by institutional forces rather than maintaining its original anti-establishment ideals. Despite his reservations, Thiel’s investment firm, Founders Fund, has profited significantly from Bitcoin investments and recently made a $100 million purchase during a price dip.
Institutional Influence
Aaron further connected the dots between institutional investment strategies and broader market trends. He highlighted Bitcoin’s recent market volatility, including a significant price drop and subsequent recovery. This volatility is framed as a tool used by Wall Street to manipulate the market. He discussed how Wall Street’s control over ETFs and regulatory actions might be used to push Bitcoin’s price lower.
For instance, the delay of the spot Ethereum ETF is seen as part of a broader strategy to influence the cryptocurrency market.
Short-Term vs Long-Term
Interestingly, analysts expect Bitcoin’s price to experience short-term fluctuations, potentially dropping to around $40,000. While the market anticipates a rise, institutions are allegedly waiting for Bitcoin to hit $40,000 to buy in. Despite current market manipulations, analysts believe that the long-term trend for Bitcoin remains positive.
They argue that Wall Street’s efforts are a temporary measure to correct the market before a significant rise in Bitcoin’s value.
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