ENCOURAGING ANGELS: Bitcoin Up $8k in a Day Means the Dollar Just Went Down-BTC’s Price Discovery Suspect and Derivatives Collateralized with Dubious Crypto Leveraged Up to 125 Times–No Way This Ends Well

Screenshot from CoinMarketCap at approximately 3:57pm EST 11/11/24

By Stan Szymanski

Bitcoin (BTC) is up over $8,000 in the last 24 hours. Let that sink in for a minute.

Maybe we should be thankful to see such monetary wonderment and opulence taking place during the historic times we are living through.

I’m cynical… I should be and so should you.

Most cryptocurrency exchanges rely on the ‘StableCoins’ of USDT (Tether) and USDC (the ‘digital dollar’) to settle crypto trades and receive capital from the banking system.

Years ago I thought it was interesting to hear the Bitcoin was ‘digital gold’. Hearing that BTC could not be compromised and that only 21 million would every be mined gave me hope for a system of ‘sound money’. My message to you today is…

POOF! Those ideas are gone…I’m going to share some interesting findings on why there is no way that this ends well…

While it might be true that Satoshi Nakomoto will only ‘mint’ 21 million Bitcoin, it doesn’t mean that there aren’t other shadowy forces at work to allegedly manipulate the price of the beloved ‘coin’. And when it is up $8,000 in one day, wouldn’t it be a great day to talk about it?

Is Bitcoin Price Discovery Genuine?

In October 2019 John Griffin and Amen Shams published a writing titled ‘Is Bitcoin Really Un-tethered?’ The gist of the 119 page paper can be summarized by reading its abstract:

…’This paper investigates whether Tether, a digital currency pegged to the U.S. dollar, influenced Bitcoin and other cryptocurrency prices during the 2017 boom. Using algorithms to analyze blockchain data, we find that purchases with Tether are timed following market downturns and result in sizable in- creases in Bitcoin prices. The flow is attributable to one entity, clusters be- low round prices, induces asymmetric autocorrelations in Bitcoin, and sug- gests insufficient Tether reserves before month-ends. Rather than demand from cash investors, these patterns are most consistent with the supply-based hypothesis of unbacked digital money inflating cryptocurrency prices.’…(Is Bitcoin Really Un-Tethered?)

The authors are basically saying that, as I understand it: When Bitcoin has a downturn in price…Tether prin