Key Takeaways
- Mark Yusko exposes how ETFs manipulate Bitcoin prices through traditional market strategies.
- Significant price movements in Bitcoin often occur outside traditional trading hours, influenced by large institutional players.
- The use of futures contracts facilitates market manipulation, allowing institutions to secure Bitcoin at favorable prices.
Mark Yusko, a prominent hedge fund manager, has shed light on how ETFs manipulate Bitcoin prices.
This practice, according to Yusko, is a continuation of traditional market strategies adapted to the cryptocurrency market.
Strategic price manipulation by ETFs
Yusko explains that entities drive down Bitcoin prices through negative sentiment or market actions to buy more at lower prices.
He highlights that significant price movements often occur outside traditional trading hours, influenced by large institutional players manipulating ETF closing prices.
The role of futures in price manipulation
The use of futures contracts allows for speculation on Bitcoin’s future price without physical possession.
Yusko points out that this detachment from physical assets facilitates market manipulation, enabling institutions to secure Bitcoin at favorable prices by influencing supply and demand dynamics.
Specifically, Yusko explains:
Prices fall 10% overnight because there’s a bunch of manipulation in the futures market… If you want to buy a lot of something, what do you do? You sell. You tell everyone how much it sucks, you short it, you push the price down so you can buy more at a lower price.
Yusko claims this approach mirrors long-standing Wall Street practices, adapted for the cryptocurrency market.
