Categories: Payment system news

Was Bitcoin Crash Orchestrated? This 4 Theories Scream Beware

With so much FUD floating the Bitcoin and crypto market, many have wonder if the recent price action was the result of a ‘coordinated attack’.  Writer Rob O’Neill believes there are 4 potential main theories that could possibly explain recent events with institutions and ‘the ultra-rich’ as the main catalyzers.

O’Neill claims these entities feel they ‘missed out’ on the early days of cryptocurrencies and BTC. Thus, they are looking to gain more control over the space as they acknowledge that cryptocurrencies are here to stay. The new wealth created by BTC could be a threat against the establishment. O’Neill said:

(…) prediction 1. Over the next few years there will be numerous repeat efforts to crash crypto markets. These will be coordinated, and institutions + wealthy people will buy enormous amounts on the dips. We just saw one of these happen.

At this point, these institutions and wealthy could try to increase their crypto holdings for every major project, such as Bitcoin and Ethereum. In addition, they could receive government backing in exchange for the protection of fiat currencies. O’Neill said:

Prediction 2. Government will be used to strong arm & scam retail in order to advantage institutions & prevent retail from creating serious wealth. There will be taxes, coin seizures, and numerous regulations that inhibit retail from profiting & gatekeep on/off ramps.

Bitcoin’s Proof-Of-Work Under Attack?

The third prediction involves centralized exchanges and platforms with Know-Your-Customer (KYC) policies. In the past year, regulations have been proposed in the U.S. to try to obtain more information from these platforms and the so-called ‘covert wallets’.

Non have been approved so far and have received a push back from the crypto community. However, O’Neill said:

If you have coins on exchanges, especially KyC ones, you need to seriously consider this. They will tie names to wallet addresses & all the sovereignty of crypto will disappear… Unless you are smart & anon.

Another potential epicenter for an attack could be Bitcoin Proof-of-Work (PoW) consensus protocol. O’Neill believes narratives could be placed on energy consumption, e-waste, and other anti-environment arguments that could turn the public towards Proof-of-Stake-based projects. This could be ‘easier’ to control by seizing a large amount of a cryptocurrency’s total supply.

In the end, I don’t know what will happen and I can’t tell the future. This is simply my analysis of what I think are the obvious plays against crypto from the ‘elite’ and the kind of outcomes they will be looking for. Will they succeed? That depends. I think we’ll see a mix…

At the time of writing, BTC trades at $56,670 with 4.5% profits in the daily chart. Higher timeframes remain at a loss after this week’s crash.

BTC with signs of recovery in the daily chart. Source: BTCUSD Tradingview

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