Renowned Hedge Fund Manager Reveals How ETFs Manipulate the Price of Bitcoin
Mark Yusko, a well-known hedge fund manager, has provided a rare glimpse into the intricate methods used by exchange-traded funds (ETFs) to manipulate the price of Bitcoin. This manipulation is not a new phenomenon but rather a long-standing practice deeply rooted in Wall Street’s history, adapted to the cryptocurrency market.
The Strategic Manipulation of Bitcoin
Yusko’s analysis revolves around the strategic manipulation of Bitcoin. This strategy mirrors the age-old scheme employed by Wall Street to depress prices in order to buy assets at lower values. He specifically highlights how entities can drive down Bitcoin prices through negative sentiment or direct market action, with the intention of accumulating more Bitcoin at the depressed value. This practice is not only prevalent but has been perfected over several decades in traditional markets.
“Prices fall 10% overnight because there’s a bunch of manipulation in the futures market… If you want to buy a lot of something, what do you do? You sell. You tell everyone how much it sucks, you short it, you push the price down so you can buy more at a lower price,” Yusko explained.
The Operation of Bitcoin ETFs
Yusko delves deeper into his narrative by discussing how Bitcoin ETFs operate. He points out an interesting pattern where significant price movements in Bitcoin occur outside of traditional trading hours. According to him, this anomaly can be attributed to the strategic actions of large institutional players who manipulate the closing price of Bitcoin ETFs, subsequently affecting the asset’s overnight valuation. This manipulation ensures that these entities secure profits by capitalizing on the price discrepancies created by their own actions.
“All of the gains in the Bitcoin ETFs happen overnight… None of it’s happening during the day because what’s happening right before close, the big dogs are selling naked in the futures market. They’re pushing the price down; ETFs have to buy; they can only trade the last minute of the day,” Yusko added.
The Role of Bitcoin Futures Contracts
This strategy leverages the futures market, where physical possession of Bitcoin is not required to trade. Bitcoin futures contracts allow traders to speculate on its future price, influencing its current value without the need for physical exchange. This detachment from physical assets provides an avenue for market manipulation through speculative trading, distorting the true supply and demand dynamics of Bitcoin.
“If I want to sell you a Bitcoin, all I have to do is write you a contract. And as long as I go get a Bitcoin before that contract settles, we’re good,” Yusko emphasized.
Influence of Large Institutional Players
Yusko further highlights that large institutional players are behind this calculated effort to manipulate supply and demand dynamics. Their actions enable institutions to acquire Bitcoin at favorable prices, further tipping the market in their favor.
Understanding Market Manipulation and Its Implications
Yusko’s insights reveal a complex web of market manipulation where traditional strategies find new life in the cryptocurrency market. By understanding these mechanisms, investors can adapt their investment strategies accordingly. Armed with this knowledge, they can navigate the market with awareness that what may seem like random market fluctuations could actually be orchestrated manipulation.
Hot Take: The Art of Manipulating Bitcoin Prices Unveiled by Renowned Hedge Fund Manager
Mark Yusko, a renowned hedge fund manager, has shed light on how exchange-traded funds (ETFs) manipulate the price of Bitcoin. By strategically driving down prices and manipulating Bitcoin ETFs, large institutional players can secure profits and influence the market to their advantage. This revelation emphasizes the importance of understanding market manipulation in the cryptocurrency space.
Through careful analysis, Yusko has exposed the intricate methods employed by these entities to depress prices and accumulate more Bitcoin at lower values. He highlights the role of Bitcoin ETFs in this manipulation, particularly focusing on the significant price movements that occur outside of traditional trading hours. By manipulating the closing price of Bitcoin ETFs, institutional players affect the asset’s overnight valuation, allowing them to capitalize on price discrepancies created by their own actions.
The use of Bitcoin futures contracts further enables market manipulation by detaching trading from physical assets. Traders can speculate on Bitcoin’s future price without requiring actual possession of the asset, distorting its true supply and demand dynamics. This speculative trading allows for strategic maneuvers that benefit large institutional players.
Yusko’s insights provide valuable knowledge for investors seeking to navigate the cryptocurrency market. Understanding these manipulative tactics allows investors to adapt their strategies accordingly, recognizing that apparent market fluctuations may actually be orchestrated moves by influential players. By staying informed and vigilant, investors can make more informed decisions in an ever-evolving market.
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