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Deliberate market destruction through capitulation over time
Recently observing the market, I see one consistent factor: The market is being squeezed to the lowest levels. And kept in that state with no movement for as long as possible.
This leads me to think that such actions are intentionally carried out. Against the backdrop of total apathy and fatigue from market swings. People simply hate any market movement. I dare to suggest that 99% of market participants who are still in positions just want to withdraw their money, delete all exchanges from their phones, and leave this mess forever. I admit, I also want to do that, about 95%. But these remaining 5% still make me consider pushing further, in case of achieving a no-loss situation in the portfolio.
Capitulation over time — many have heard this term and see it happening right now. And my thoughts about this market haven't changed drastically. I still believe that the market is just being squeezed to the last drop. So that no one remains here. Let’s say, the chances of winning are higher in a casino than in the crypto market. So, the question arises: Why destroy the market to such an extent? Who benefits from this? And is this market doomed to die?
Unfortunately, I don’t have definitive answers to these questions. But I will try to answer based on how I see it from my perspective.
I think they are destroying the market so that it appears worse than a casino. So that people don’t want to buy anything, enter here, or invest capital. Why? I don’t know, I would say to eliminate competitors (funds, private investors, etc.). But who exactly to eliminate is unclear now. There are hardly any people here as it is, and even less capital.
Who benefits? Not clear. Manipulating the market to such an extent creates maximum negative reputation and distrust in this market. America, the crypto capital — where is it? Ridiculous.
Will the crypto market die? If they keep pressuring it like this, probably yes. Simultaneously, tokenized stocks are being listed on exchanges, replacing crypto projects. If this is the future of the crypto market, then things look grim.
Overall, things are pretty bad. If the US really has plans for this market and to save its economy, then shaking up this market now is just right. Because the current level of apathy is at its maximum. Using the element of surprise, they could change the market narrative to the opposite extreme. Whether this will happen or not, it’s unclear. For now, we are just observing market behavior.
The same market advice applies: stay as detached as possible and mind your own business. There’s nothing to do here for now.