dear journal
today people are selling corn because other coins are securities and coinbase is in trouble for selling them
Discussion
Is Coinbase really in trouble or are they just being made into an example but being protected and given assurances? Because that's what it feels like.
could be a slap on the wrist, could be that they are trying hard to keep Bitcoin from pumping, could be that they want them offshore
I don't know but what I do know is that people don't understand Bitcoin <> crypto
The market makers are selling corn because JPM is selling eth. Unlimited $ and ability to create unlimited ETH gives you free reign to control the price of bitcoin. BTC-ETH spread and ETH-BTC spread show you exactly what's going on.
ETH does like $25B in volume and BTC does like $50B. It's a controlled market at the moment. Not sure how it breaks. Nobody is actually trading/owning ETH it's just there to control fiat price through spreading.
hmmm tell me more
BTC-ETH spread needs to go way up. When you buy bitcoin a market maker sells it then buys ETH so he's -1 BTC and +~19 ETH. He then buys the spread position to get flat. The spread is a ratio. Its how market makers trade. BTC-ETH is an actual contract market makers can be long or short.
So if you're the fed or JPM you could create a ton of eth sell it into the market and forcing the price down (opposite trade as above). JPM creates the eth out of nothing. Fed buys it and holds it forever.
ETH is key to manipulating the whole thing that's why they are trying so hard to legitimize it.
Anytime you see BTC start to rally a lot you see a ton of ETH get sold into the market to control it.
That's great news.
That means I have more time to stack.