Market manipulation, insider trading
These are the words that naturally spring to mind. Elon musk is not his first attempt. The SEC had already snapped him up in 2019 for manipulating the stock You’re here thanks to a series of tweets based on the wind. We console ourselves knowing that the action of You’re here is also down 36% from its ATH.
Elon will not take it to paradise. Apart from its Cornucopian followers and scavengers who take advantage of its pump & dump to make the pockets of the younger generations, its double game no longer amuses anyone. The billionaire has gone from crypto hero to scheming and megalomaniacal outcast in a weekend.
The show began on May 09 after conceding on live TV that Dogecoin was a “Scam”. Consequence: -50% in a few days. The fortune amassed on the backs of cuckolded fans will be used to finance his big toys to go to the moon by 2024.
CEO of You’re here then paid the bitcoin scalp by announcing that his firm was stopping selling its cars in BTC out of environmental awareness… The tweet caused a 25% drop as we were about to settle again above $ 60,000. Postponed.
Around $ 49,000, Musk hammered home the point by threatening to sell his $ 1.3 billion BTC. Once he hit $ 42,845 (right on the 61.8% Fibonacci retracement), the puppeteer tried to turn the tide with this tweet:
It is now hard not to understand that the richest man in the world has always had the ambition to control bitcoin and use it as a tool of influence. At the same time, we should have been wary of a billionaire who wants to connect our brains to chips (Neuralink) …
Divide ut imperes …
Some will argue that he can not mean harm to bitcoin since it has 1.3 billion of it. Big mistake …
$ 1.3 billion represents only 0.1% of all bitcoins and not even 1% of his personal wealth. Losing that money wouldn’t make him hot or cold. That being said, this case has proven to be a successful strategy. Not only for him, but also for bitcoin. + 70% since the announcement of You’re here.
However, billionaires are not the type to give freebies… MM has benefited greatly from this huge free publicity stunt. Come to think of it, the payoff for the Space X guru is threefold:
Difficult to accuse Elon to want to lead the BTC since he owns it himself … And yet, succeeding in taming bitcoin with tweets would make him the muse of central bankers, which will allow him to obtain much more power than the simple fact to hold some bitcoins.
It should be understood that bitcoin, as a new global monetary architecture replacing the petrodollar, is worth much, much more than the bag of You’re here. Elon bet the powerful will keep him going on his throne if he manages to sink bitcoin.
Indeed, remember that You’re here and Elon owe their fortune to central bankers and their bank notes, not to mention that You’re here makes profits only thanks to state subsidies …
Likewise, his growing interest in Dogecoin shitcoin and his attempt to rekindle the block size debate has removed any ambiguity. The arch-billionaire wants to hurt bitcoin. Bar point.
Unfortunately for him, his posture is untenable. The debate was settled a long time ago and the fork has already taken place (BCH). The problem of transaction fees is solved by the second application layer (Layer-2) like the Lightning Network or Liquid (Blockstream).
To end on Elon musk and its big clogs, remember that each time bitcoin repels an attack, the whole world ends up appreciating its invulnerability and buying it. These are the sales enjoy it, BTFD. Especially since inflation is fast approaching …
Inflation is coming
Very interesting things happened whileElon was a diversion. Firstly, the dollar Index is back below the psychological bar of 90. We are only a few cables away from a low dating from 2014. This heavy drop in the greenback bodes very well for bitcoin, because it doesn’t bode well for bitcoin. let’s not forget that there is the “USD” leg in the BTC / USD pair.
The latest inflation figures are another reason for optimism in the medium to long term. Prices are currently increasing at the rate of 4.2% per year in the United States… If we put aside 2008, the year of the subprime crisis, inflation is at its highest for 30 years ! The price at the pump is over $ 3 a gallon, unheard of since 2014.
See google searches in the United States for the query “prices go up”:
We are heading straight for double digit inflation. In any case, this is what happened every time the money supply increased by more than 20% in a single year:
It’s even worse in Europe where, in addition to inflation which should soon exceed 3% per year, negative rates are being introduced on bank accounts … Every day, it becomes harder to withdraw your money without paying usurious fees . Surveillance and racketeering capitalism takes its ease. All that remains is the end of cash and the merger between health pass and credit card to complete the dystopian picture …
Another big news hushed up by the intifada in Palestine: the ECB is preparing to change its mandate to let inflation go above 2%. In doing so, Christine Lagarde walk in the footsteps of FED which already formalized the thing last year.
Among other celebrations for BTC, note that US finance titan Stanley Druckenmiller has said the dollar may lose its status as an international reserve currency over the next 15 years. He was also very worried about inflation:
” I don’t think there is a more powerful driver of inequality than the US Federal Reserve. It has been going on for 7 years now. […] Inflation will escalate at an insane rate… No other class will suffer as much from the coming collapse as the poor! “
In addition, the takeoff of the currency helicopter in the United States will not help … A Democratic fringe calls for the creation of universal income and a fourth round of “stimulus checks” is in the pipeline. We feel that the debt will be erased thanks to inflation …
Bitcoin has a very bright future in the face of these torrents of fiat currency. Do not miss the opportunity to load the mule …