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Great Crypto-Currency Ponzi Scheme Crashes as Bitcoin loses US$800 billion… – Christopher Joye

Ponzi Scheme

Great Crypto-Currency Ponzi Scheme Crashes as Bitcoin loses US$800 billion… – Christopher Joye

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As a result of sharply higher inflation and interest rates, the great unregulated crypto-currency “ponzi scheme” has finally started to unravel, as we warned it might in December 2021 and January 2022

In concert with its highly correlated listed equities masters—the S&P500 and NASDAQ Composite indices—bitcoin has plummeted 63% from a peak of US$68,991 in late 2021 to a low of just US$25,424 this week. At this nadir, bitcoin’s market capitalisation had shrunk by US$800 billion, prompting some investors to start referring to it as simply “bitcon”. 

Bitcoin’s price has collapsed from $68,991 in late 2021 to $25,424 with US$20,000 on the horizon for short-sellers

It is certainly a hedge fund’s dream with droves of retail investors beguiled by a preternatural “buy-the-dip” reflex only to see more sophisticated short-sellers pummel crypto-currencies ever-lower. Twitter has been awash with rumours that powerful hedge funds, including Ken Griffin’s legendary Citadel, have led the waves of short-selling that systematically turn these rebounds into punishing dead-count-bounces. These allegations have, nonetheless, been denied by Griffin’s independent brokerage firm, Citadel Securities (although notably not by his hedge fund, Citadel).

Even more sensationally, so-called “stable coins”, which are supposed to be pegged to specific currencies, such as the US dollar, and trade dollar-for-dollar with them, have collapsed as investors belatedly question the…

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