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My articles on wealth, influence, and power

CRYPTOCURRENCY CRASH: DOOM OR OPPORTUNITY?

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One of the greatest crashes in the cryptocurrency markets just happened over the week; with a 48% drop in market capitalization from the all time high of $830.7 Billion (7th Jan) to a low of $428.5 Billion (17th Jan).

What caused the crash?

  • China regulation

China has renewed their push to curb cryptocurrency trading and mining as a recent reuters report has shown.

A senior Chinese central banker says authorities should ban centralized trading of virtual currencies as well as individuals and businesses that provide related services, an internal memo from a government meeting seen by Reuters showed.

  • Chinese Lunar New Year

To further worsen the outflow of funds, the Chinese Lunar New Year is just around the corner on the 16th of February as Chinese people will start cashing out to celebrate the new year

  • Korean Regulation

There’s been news of Korean regulators pushing for more regulation causing a backlash from the public in Korea.

On Monday, South Korea’s government delivered its strongest statement to date about the dangers of trading Bitcoin, warning the public to exercise caution.

“Cryptocurrency is not a legally recognized currency,” the statement said.

The remark came after South Korea’s justice minister said last week that the government was preparing a bill to ban cryptocurrency trading on exchanges, sending prices of Bitcoin, the world’s most traded virtual currency, to fall more than 16% in two hours on South Korean exchanges.

  • Wall Street access to Bitcoin futures

Unlike in early 2017 Wall Street has not had access to the cryptocurrency market, but now with Bitcoin futures made available through CME the biggest exchange in the world in December. Wall Street was seen with a significant increase in the volume of its short positions through the futures contracts.

Doom or Opportunity?

  • Markets run in cycles

Every market runs in cycles, just like the stock markets, the cryptocurrency market is no different. The context may be different, but the underlying emotions of fear and greed are what drives and accentuates these cycles.

  • Cryptocurrency is here to stay

Bitcoin has opened a whole new market for individuals to invest and speculate. Especially to those who are not traditional investors and speculators. Easy access to the markets has created a new generation of investors and speculators who believe in the potential and value of the cryptocurrency markets.

  • But which cryptocurrency to invest or speculate in?

In my personal opinion, if you’re just starting out, look at ways on how you can invest in Bitcoin. As prices drop at a significant discount towards $8k (if it ever reaches that point), it can be the biggest opportunity for you to start your cryptocurrency journey. Take your time to learn the markets, it is not something you will master overnight. I have created a cryptocurrency Twitter list with the sharpest minds in the cryptocurrency world, subscribe to it and take your time to learn from these brilliant minds.

  • Understanding value

Know that just like any other markets you have to understand what drives the value of the cryptocurrency markets. Start learning the fundamentals through my Twitter list and also basic Technical Analysis to understand how the markets decide on the price of an asset.

Always remember regardless of what investments or speculation you get into, never put more than what you can afford to lose.

Protip: If you look towards the left of the coinmarket chart I shared, you will notice a previous bounce at the $400 Billion region, the markets may find support now and if it holds you can expect a recovery in prices in the next few days to a couple of weeks.

Jamie Dimon JPMorgan Chase CEO Bitcoin Fraud

Jamie Dimon’s ‘Bitcoin is a Fraud’ Endgame Exposed

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Jamie Dimon JPMorgan Chase CEO Bitcoin Fraud

In November 2013 amidst the financial crisis, Jamie Dimon – JPMorgan Chase’s C.E.O., came under spotlight when JPMorgan Chase reached a $13 Billion USD  to federal and state authorities in order to settle claims that it had misled investors in the years leading up to the financial crisis is under the spotlight once again, this time it has to do with Bitcoin.

On the 12th of September 2017, Dimon claimed that Bitcoin is a ‘fraud’ that will eventually blow up. Dimon also said he’d “fire in a second” any JPMorgan trader who was trading bitcoin, noting two reasons: “It’s against our rules and they are stupid.”

Jamie Dimon: Governments look at bitcoin as a novelty from CNBC.

Prices of Bitcoin from $4190 subsequently dropped by 2% on the news and to a low of $2,975.01 (-29%) 3 days later; but after hitting the lows, prices recovered rapidly from a big order and ended up to $3,740 (+25% from the low). Who was behind those orders?

Twitter user @IamNomad drops this exposé the very next day:

The picture shows that JP Morgan Securities Ltd. was one of the top buyers in volume for Bitcoin on Nasdaq.

Here is a translated version of the page:

So is Jamie Dimon going to fire the trader that bought these coins? I don’t think so. Here is one big lesson we can learn; there are various players in the financial markets, all playing the same game – to profit. Dimon is a big player in the market, he knows how the game is played, and is willing to use his position, prominence, and saying whatever he wants to the media to win the game . He was riding the wave of the downtrend sparked by the news in China regulating ICO’s and Cryptocurrencies, and was probably looking for an opportunity to catalyse the drop in prices so that him, his firm, and other insiders can get a major discount on Bitcoin at huge volume. China has the same game plan as well, pump out news, let the prices drop, then buy on the dip, China story’s for another article another time.

You can find the trades on Nasdaq’s historical data and with further digging we can also trace what probably is JPMorgan Chase’s Bitcoin wallet that was used for this transaction. A Facebook friend of mine shared the link that shows the volume that corresponds with the trades reported above.

Jamie Dimon JPMorgan Chase's Bitcoin Wallet

So remember, just because someone in the media with authority says one thing, doesn’t mean that they have any obligation to do the total opposite. If you want to spot real financial scams, read this article and learn to read in-between the lines, and follow my twitter and instagram accounts if you want more timely, relevant Bitcoin alerts and updates.