It is widely known that the financial playing field between large institutions and the public is uneven. Time and again, banks and investment firms have prioritized profits and self-interest over market stability and public welfare. Unfortunately, government officials have often enabled or failed to curtail these behaviors, leading to significant economic and societal consequences.
Self-interested actions have contributed to widening economic disparities, particularly through executive compensation models that reward risk-taking, of which the government will bail them out if it all goes wrong. Such unchecked self-interest can lead to market bubbles and crashes, harming ordinary investors and destabilizing economies.
Addressing Wall Street excesses will require sustained public pressure and political will to prioritize the interests of Main Street over those of wealthy entities. The critical question is whether we can break this cycle before traditional finance fully integrates into the crypto ecosystem. The answer, unfortunately, may be less than optimistic.
Since the launch of the Bitcoin ETF in January, the public has arguably been shortchanged regarding Bitcoin's potential price appreciation. Despite Bitcoin hovering above $60,000, it should be valued much higher. Since the ETF's launch, there have been $16 billion in Bitcoin inflows. These purchases were made over-the-counter, meaning Bitcoin did not experience the full buy pressure it would have if bought through a centralized exchange. Typically, for every billion dollars invested, Bitcoin's price increases by 1%, indicating a missing 16% increase in buy pressure.
LIVING IN THE CRYPT0SPHERE NFT
Let's break down the missing $16 billion purchase, with a starting price of $60,000:
-Additional 1% after the first $1 billion: $60,600
-Additional 5% after the next $5 billion: $63,630
-Additional 10% after the final $10 billion: $69,993
The Bitcoin price should be approximately $70,000. However, historical data suggests that FOMO (Fear of Missing Out) and positive sentiment can amplify price movements by 2-3 times. Therefore, there should be an additional price increase of 16% * 2-3 = 32% - 48%
Calculating further:
- 16% (initial) + 32% - 48% (FOMO) = 48% - 64%
- Real Bitcoin price: $60,000 * 48% - 64% = $88,800 - $98,400
Whether intentional or not, traditional finance practices in crypto is amounting to market manipulation. These institutions are front-running public orders and coordinating trade with centralized exchanges, which influences prices in their favor. However, not all hope is lost, there is always cereal dust at the bottom of the bag. Yes, of course I'm being facetious, but use what you know to play the cards you were dealt. These asset managers haven't been buying billions in Bitcoin just to lose money... Get yours before it's too late.
