Bitcoin
Out of context: Reply #2091
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- jonny_quest_lives1
I dunno maybe the simplest explanations for yesterday's events are the most accurate. via the internets...
"The Bitcoin price is set via manipulation at the arbitrage layer and most of that is probably high frequency automated bots. When it flash crashed today and the exchanges had to go offline I think one of the arb bots malfunctioned. The reason I say this is because everything shut down and reset then the price went up huge. That wasn’t a natural market, that’s manipulation.
Tether is used to make the fake trades back and forth at the arb layer by single actors. They’re trading with themselves with fake tether IOUs and bitcoin pools back and forth. Nothing is lost and no capital is at risk because they’re trading with themselves.
The higher the price goes, the more USDT you need to maintain that price, and the less overall real liquidity you have in the system.
That means when there is a big sell off, and an actual one and not just wash trades, what real liquidity there is gets pulled out quickly. Once the big desks notice the liquidity is dropping they turn off their high speed traders and the buy and sell walls evaporate, leaving only people looking to either actually buy or actually sell.
It turns out, once you remove all the wash trading, not only are there not as many buyers and sellers as you'd think, but they don't really agree on the price. This is why we saw buy/ask spreads hit $500+ for a bit.
What we saw today was the market correcting when it's not being maintained with artificial volume and it turns out the direction it was going to correct in was straight down."
- I know this is English, I recognize most of the words, I've read it twice. This is what I need to know to make millions. Yet I'm completely lost._niko
- I'm going to my garden now to plant this year's tomatoes. :)_niko
- a bit late to plant tomatoes here unfortunately...jonny_quest_lives
- "Coinbase fined $6.5 million over improper trading practices
The crypto exchange was accused of ‘misleading’ data reporting and ‘wash trading’"******** - https://www.consumer…********
- If Coinbase was/is doing this and it's regulated, imagine what the other 380 exchanges are doing behind the scenes lol********
- anyway, high-freq trading is a thing but wash trading is illegal, just not in crypto ofc********
- So basically this was the Bitcoin Flash Crash of 2021...********
- I like how the Tether theory has been around for years now and still no one can say if it's true or not.yuekit
- It raises the question of whether a monetary system could be based on a lie and still function, as long as the participants had no idea how it really worked.yuekit