RE: RE: RE: Copper Rally22 Feb 2021 22:04
billy
never really left like my 10pc daily gain. today was a real stonker up in thr morning had a limit sell set from friday for 303 done 10pc already banked. it taanked to about 261 i bought back in. sold at 285 and went for my paper and bacon got back and the sp tanked to 235 so i watched it and bought back in still.holding. the drop was more than 15pc. here is the storey crazy but prob true
A quick précis below:
Background: F2Pool is the largest Bitcoin mining pool. They, and associated parties (eg whales using them as personal miners) hold an extraordinary amount of Bitcoin. CME are a provider of derivatives on Bitcoin (amongst other things.) CME's contracts expire at the end of each month.
F2Pool (or someone associated with them) has figured out a way to make a great profit by burning leveraged long traders on CME.
They wait until close to the end of a month when Bitcoin is "high", then they short Bitcoin heavily. Having done that, they start to sell Bitcoin. They'll sell slowly at first, to get as much for their Bitcoin as possible, and then when the market starts to move strongly downwards they'll sell the rest, triggering a crash. See the run-off in price from 8am today, culminating in the crash.
Now, the leveraged longs are getting shafted by margin calls. Soon they have to liquidate their positions, or have them liquidated for them by CME when they can't meet the margin calls. This accelerates the crash still further, thus making our manipulators a fortune from their short position.
At the bottom, F2Pool (or whomever is trading with the coins mined by F2Pool) simply close their short for a huge profit, open a leveraged long position and buy all their coins back again at a huge discount, making money on the way back up as well.
This sounds like just a neat theory - but CryptosRUs has correlated the events with the movements of large quantities of Bitcoin from F2Pool controlled wallets to exchange wallets. Not just once - but multiple times. Another, smaller transfer out of F2Pool wallets happened about four hours later. And another, smaller crash happened just then. Ditto with the crash in January from 40k to 29k. It all ties up.
Interestingly, the central message is that this only really works because we're in a strong bull cycle, so the rebound is predictable.
Finally we have the intriguing possibility that Michael Saylor (who is on record as being about to buy Bitcoin) or someone else who has a vested interest in Bitcoin going up long term (Elon Musk??) might have sufficient motivation to burn these jokers by making their planned purchases all at once in the open market once the shorts are in place, driving Bitcoin violently higher and wiping out the manipulators. If they do - AWESOME! And if they don't, then we just have to wait until the contract expiry and normal upwards service should be resumed.
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