- This topic has 5 replies, 2 voices, and was last updated 5 months, 3 weeks ago by Caraquena.
- Friday, June 17th, 2022 at 17:58 #310769hyperinflationUSAParticipant
Futures allow next week/month/year supply of tulips to be sold in advance. Since the supply of tulips can be increased by growing more they were able to tap into a large supply of future crops and sell them well in advance causing the bubble to crash.
BTC is currently produced at 900 newly mined BTC per day. Future contracts for next month allow 27,000 Bitcoins to be sold before they are even mined. This add huge supply pressure and when futures stretch 4 months on the CME that a extra 108,000 BTC in advance. The good news is production of new supply decreases in the future, unlike tulips.
So think about this. At the peak $69,000 the BTC Futures ETF launched. I’m willing to bet that that caused the crash. Four months of futures at that price would have been a additional $7,452,000,000 USD worth of bitcoin added to the market. Now it all makes sense why wall street and the SEC wanted a bitcoin futures ETF, but not a spot price ETF. They wanted to crash the price of bitcoin by adding more supply onto the market. However this only a short term effect, not a long term effect as the bitcoin supply output decreases over time.Friday, June 17th, 2022 at 18:02 #310770Rambalamda
Of course and that’s why the SEC allowed plenty of futures ETFs. It’s a win for their banker buddies.Friday, June 17th, 2022 at 18:07 #310771anotherbrckinTH3Wall
Precisely because it is a short term effect, corporations and banks will buy in at this low price, thereby pumping the price past previous ath. Hence the shout from Saylor not to sell.
I am of the belief ( so, without evidence) that once it pumps, the spot etf will be approved, and it won’t be long at all before average Joe can’t buy a Bitcoin due to the fiat cost. Therefore making the rich richer.Friday, June 17th, 2022 at 18:10 #310772jetro30087
I mean everyone can see the entire global market crashing right now. Maybe that has something to do with it.Friday, June 17th, 2022 at 18:22 #310774Caraquena
Victims finding some malign outside agent to blame for a crash happens over and over again in history. The Scottish writer Charles Mackay first published *”Extraordinary Popular Delusions and the Madness of Crowds”* in 1841; it is in the public domain so can be read for free for example [here](https://www.econlib.org/library/Mackay/macEx.html), though if you can afford it I recommend Tim Phillips updated modern take on it, see [here](https://www.amazon.com/Charles-Mackays-Extraordinary-Popular-Delusions-ebook/dp/B004INHHF6/ref=sr_1_1?crid=3IPL7FUN1O9T2&keywords=extraordinary+popular+delusions+and+the+madness+of+crowds+tim+phillips&qid=1655487183&s=books&sprefix=extraordinary+popular+delusions+and+the+madness+of+crowds+tim+phillips%2Cstripbooks%2C95&sr=1-1) at Amazon.
When the Fed raises interest rates the riskiest investments get sold faster, see how much the NASDAQ is down compared to the Dow Jones. Problem in crypto is that so much of the space was highly-leveraged with cross investments in other projects so that margin calls and liquidations are accelerating the decline.
Plus miners have to sell some of what they were HODLing to pay the bills.
And we still haven’t seen the Mt. Gox coins get distributed to the victims, who knows what will happen then.Friday, June 17th, 2022 at 18:33 #310773S-W0RKS
The futures usually end up in cash settlements and no BTC needs to be delivered.
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