Bitcoin roared back over $4000 yesterday despite the shock and awe of the Empire’s media and regulatory blitzkrieg. The more these attacks fail, the stronger the market gets and the closer we get to a turning point in our financial history.
The barrage has been relentless. Headlines spew forth seemingly without end. Will Bitcoin survive the latest assault from China’s regulators?
The Bitcoin markets are too unstable. Coinbase customers can’t get their money out!
If you try to take it all in you’ll give yourself whiplash trying to keep up with it all. And if you are a casual observer wondering if it’s time to jump onto the cryptocurrency bandwagon you may have been scared off by all of this.
After all, Jamie Dimon, CEO of J. P. Morgan Chase called Bitcoin “a fraud” while informing investors that his company would miss their latest quarterly guidance on their trading activities. Oh, and by the way, they would no longer be giving guidance on that part of their business.
Bitcoin briefly touched the $5000 level and immediately began to sell-off. Once the selling began the governments’ and their agents piled on. I had warned my subscribers in the run up to $5000 that I was worried a correction was on the horizon.
I was right. But it doesn’t take a genius to see that. Any half-witted market analyst can spot a market that’s gotten ahead of itself.
No, it was the reason why this rally to $5000 worried me was that I suspected it was being manipulated there by the banks and Bitcoin’s enemies to then engineer a crash in prices and scare the living daylights out of those same people just beginning to get curious about it.
Public Service or Public Menace?
Now, you can call that a public service to dampen down public mania or you can call it what it really is, an admission of fear by the ‘powers that be’ that the emerging cryptocurrency market is a real enough threat to their dominance that they felt the need to take it down.
And make no mistake, this was a coordinated attack on Bitcoin that isn’t over yet. The goal is $1000. To truly destroy people’s interest in something they have to lose more than 20%. They have to be wiped out entirely.
This is what happened to Bitcoin momentum-chasers in 2014 when it topped $1000 for the first time on capital flight out of China and the selling from that peak took the biggest exchange at the time, Mt. Gox, down. Bitcoin dropped more than 80%.
It demoralized investors for two years. But, that’s also when the bulk of the work into new and better technologies, like Ethereum, were developed.
Now, the latest news is China’s full-on clamp down on Bitcoin. China is going to find out real soon now just how hard it truly is to stop an idea whose time has come.
Because within 24 hours of the coverage by the Wall St. Journal on the latest crackdown, Bitcoin surged back over $4000 alongside Ethereum going back over $300. This is a clear signal that the governments are firing howitzers at a swarm of bees.
You may get a few of them but you won’t get them all. And the traders who survive will move to a different platform.
The full court press by the keepers of officialdom will continue for as long as it takes. Mohamed El-Erian himself (Former PIMCO CEO/billionaire), like Dimon a poster-boy for Wall Street’s interests, is writing op-eds for Bloomberg now decrying Bitcoin’s volatility.
Right on cue.
Flipping the Script
Watching these people operate is like living in an endlessly-running version of the great movie “Wag the Dog.” Everything is stage-managed if you know what to look for and, more importantly, how to look.
The people in charge of the world are incredibly powerful and very smart, but not clever. The tactics are always the same. The fear-mongering in the markets (Bitcoin is dangerous!), the sex-scandals created out of nowhere to take down a political opponent (Assange anyone?), the demonizing of foreign leaders/countries inconvenient to our interests (Iran, Russia, anyone who looks at Hillary Clinton cross-eyed).
If there is anything I can teach you in these articles it is how to see these tactics for what they are and how to use them to your advantage. Bitcoin, at times, this year has been in bubble territory. And every time it has corrected violently but predictably.
On the heels of the press breathlessly discussing Jamie Dimon’s anti-Bitcoin rant where he said he would fire any trader who bought it we found J.P. Morgan was the largest buyer of Bitcoin in Europe this weekend after it bounced off support at $3000.
Now who’s the fraud, Jamie?
The Empire Struck Back here and Bitcoin weathered the storm better than I expected it to I’m happy to say. What this means going forward is that the problems for the Empire are bigger than one kid in an X-Wing screaming down a trench with a ghost on his shoulder.
It means that that swarm of bees they thought they blew up was only the scouting force.