In a world full of theories being offered up for explanation of a market dip that plunged everything least a -15-20% here is one for you that seems most logical given all sums of information.
While many are eager to blame Musk, or “The fed” we should really take a closer look at when the dip happened as well as take a closer look at current events.
Sure, whilst Elon has been quite vocal lately and the fed has never been a strong proponent of decentralized anything, it’s important to keep a level head and realize that these things don’t directly effect the market in a way that would/should cause slippage of this level and magnitude.
So what might?
actual market pressures, say like a flood of Bitcoin hitting open markets at prices that aren’t even close to ATH’s which brings us of corse to the Colonial Pipeline.
Yes, a oil pipeline in America MAY be the ultimate cause of this impressive dip we have seen lately. Now before you go thinking I’m just a idiot for thinking a private company could effect a decentralized global market, give me a second, and hear me out.
The Colonial Pipeline, for those who may be unaware is a massive oil pipeline which controls to flow of oil/gas products to/from many states within the southern part of the United States. Earlier this month, to the dismay of many Americans, they found the privately owned pipeline had become the latest victims of a ransomware attack propagated by the cyber criminal gang “Darkside” the criminal group believed to be biased out of Eastern Europe, most likely Russian, held the pipeline hostage 5 days causing turmoil and massive disruption to the day to day of many that rely on the pipeline to deliver gasoline to those states.
so where does the crypto come in?...
well, if your not familiar with ransomware attacks, more often than not, the thieves/hackers will encrypt your shit so you can’t get access to it, and then only release it after you pay them a set amount usually in crypto currency (specifically BTC) and this time was no different, the hackers requested 5.5 million in ransom, and despite “The Fed” urging the Pipeline NOT to pay the ransom. The pipeline company did just that.
At this point you might be thinking that 5mil is a drop in the bucket compared to the overall valuation of the crypto market, and individually Bitcoin’s, and you would be right. The thing is, this gang has been doing it a while. Reportedly getting their hands on around 90million in BTC, which pre-crash, amounted to something around a million or so bitcoins, I’m to lazy to exact the math, so if someone else wants to they are my guest, either way you cut it though, “Darkside” had massive ability to manipulate the markets, which they IMO did.
You might find yourself asking something like “holy cow, 1 MILLION BITCOIN!?! In this market why not just fucking hodl!?” For this the answer is really quite simple, they are a gang of organized criminals who A) have lives and family’s to provide for just like the rest of us, B) they did very little leg work for those bitcoins, and of course C) the market, at its current time, was basically at ATH levels almost across the board (slipping even) signaling signs of market/bull exhaustion anyway. So why not if your them right?
Darkside was paid their ransom on the 8Th of May, and with the US government in hot pursuit of the gang pressure was high on them to move the coins, which they started doing almost immediately. By the 9th Darkside had shut down its dummy servers bouncing all across the US and parts of Europe and were gone with the crypto on this day, and on the days to fallow we see what becomes this massive slide/dip in the charts of the market, leading me to believe that the almost 100 million in Bitcoin hit the market in a big and exciting way for some. For most it was a pretty bad time, as long positions were inevitably closed on and the initial investments liquidated causing a sort of snowball effect that we seem to find ourselves rolling around in now.
This is NOT a proven theory, with anymore validation than some sound chain analysis (which I did not do myself) but can be seen and vetted through a google/blockchain search. And honestly it makes more sense than one guy with a loud mouth, or a flailing failing democracy trying to attack something they (should) know they will never bring down. At the end of the day, markets gunna dip, and markets gunna moon. That’s just what they do.
Hope y’all enjoyed the read, and were able to buy the dip at 29k, keep calm, and keep hodling y’all!
- ❤️ 🦛’s4ever