Popular on-chain analyst Willy Woo says that the price of Bitcoin (BTC) is being suppressed by a political agenda.
Woo tells his one million Twitter followers in a thread that with futures contracts, it’s now theoretically possible to sell an “unlimited” number of Bitcoin even though BTC’s supply is capped at 21 million.
“The door is open for futures markets to control BTC price.
Now along comes the CME, they launched a BTC casino where you could front USD to play.
Wall Street hedge funds loved that.
What’s the limits on selling BTC now?
Unlimited. Fiat is unlimited.”
With the way the futures markets are set up, Woo says that big players now have the ability to suppress the price of Bitcoin, simply by putting constant sell pressure on BTC.
“BTC doesn’t have to be killed. It just needs enough shorts in the system to suppress price.
Without a large market cap, BTC doesn’t get to make global impact.
Presently, the arc of SEC policy has been to increase futures liquidity and dominance by approving multiple futures ETF (exchange-traded funds), while rejecting all spot ETFs.
This is now a political game.”
The U.S. Securities and Exchange Commission (SEC) has approved numerous futures-based Bitcoin ETFs, while turning down countless bids for a spot-based product.
Industry proponents have long argued that futures-based ETFs are more ripe for price manipulation compared to spot products.
SEC Commissioner Hester Peirce has been a vocal proponent of a spot-based ETF and has said that the regulatory agency is holding Bitcoin to a different standard than other tradable assets.
“It is time for the Commission to stop denying categorically spot crypto exchange-traded products. The Commission’s resistance to a spot bitcoin ETP is becoming almost legendary…
The reasons for this resistance to a spot product are difficult to understand apart from a recognition that the Commission has determined to subject anything related to Bitcoin – and presumably other digital assets – to a more exacting standard than it applies to other products…
The reasoning underlying the Commission’s denials of spot Bitcoin ETPs (exchange-traded products) is itself general and conclusory, which makes it difficult to know how approval could be achieved.”
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