Institutions have been involved in Bitcoin since it caught the world’s attention. Typically, institutional involvement in new technology or assets is seen as beneficial to the development of both parties involved. However, popular crypto investor Lark Davis disagreed with this notion. He believed that institutions manipulated the market at the expense of retail and short-term investors in order to make their profit. In his last Video, it opens further to these topics, which have been broken down here.

Institutions that manipulate Bitcoin?

Davis thought so because the institutions have both the capital and the leverage to make this happen. He brought examples of some of the big names to back up what he was saying. The first on this list was Guggenheim Investments. This Chicago-based global investment firm has been accused by Davis of deliberately making manipulative statements in order to pocket Bitcoin to their advantage.

As BTC gained momentum and rebounded to $ 60,000 ATH of the month in May, Guggenheim Investments CIO Scott Minerd said in February that Bitcoin could eventually climb to $ 600,000. In conversation with CNN He also said the numbers could soar to $ 400,000 to $ 600,000 based on supply and demand like gold.

Now that Bitcoin has collapsed and investors have lost millions of dollars, Minerd changed his prediction. In an interview with CNBC, he said BTC could soon bottom out at $ 10,000-15,000. He also said the market could move sideways for the next several years before turning bullish again. Davis said of this:

“They tell you to sell when the market is weak and buy when the market is overheated. That is the game that these institutions play. “

That news followed JPMorgan’s latest statement say institutions at this price level have no appetite for Bitcoin. The same JPMorgan notice to investors states: “Complete convergence or alignment of volatilities or allocations”. [between gold and Bitcoin] is unlikely anytime soon. “In response to that claim, Davis stated:

“They’re trying to get you to sell your bitcoin … but don’t let these FUD media stories from these institutions bother you.”

He [Davis] believed that by making such statements about bitcoins, institutions create a market of fear and panic that would lead to large sales. This would prove to be beneficial for men with big money as they can purchase Bitcoin for pennies per dollar. Davis also noted

“[These institutions] have proven time and again to be one of the largest and most productive market manipulators in the world. “

However, is this true?

Short term owners have suffered really terrible losses. Short term owners continue to lose, having surrendered terribly just yesterday. They took losses on par with all of the major drawdowns in Bitcoin history.

Bitcoin Short Term SOPR (Spent Output Profit Ratio) | Source: Glassnode

Bitcoin long and short term profit / loss | Source: Glassnode

However, only the long-term owners who have held their positions despite the continuous price fluctuations are safe.

Bitcoin Long Term Holder Positions | Source: Glassnode

Even miners are currently accumulating Bitcoin, as can be seen from the metrics.

If there is one important takeaway from this video, then you can take Davis’ words to heart,

“Keep calm, stack sats”


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