With so much FUD floating around in the Bitcoin and crypto market, many have wondered if the recent price action was the result of a “coordinated attack”. Writer Rob O’Neill believes there are four main possible theories that could potentially explain recent events with institutions and “the ultra-rich” as the main catalysts.
O’Neill claims these companies feel they have “missed” in the early days of cryptocurrencies and BTC. Hence, they are trying to gain more control of the space as they recognize that cryptocurrencies will stay here. The new wealth created by BTC could pose a threat to the establishment. O’Neill said:
(…) Prediction 1. In the next few years there will be numerous retry attempts 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.
At this point in time, these institutions and the rich could try to increase their crypto holdings for any major project like Bitcoin and Ethereum. In addition, they could receive government support in exchange for protecting fiat currencies. O’Neill said:
Prediction 2. The government will be used to empower and defraud retailers to benefit institutions and prevent retailers from creating serious wealth. There will be taxes, coin seizures and numerous regulations preventing retailers from taking advantage of ramps and guarding entrances and exits.
Bitcoin proof of work under attack?
The third prediction concerns a central exchange and platforms with KYC guidelines (Know-Your-Customer). In the past year, regulations were proposed in the US to get more information from these platforms and what are known as “hidden wallets”.
So far none have been approved and a push back has been received from the crypto community. However, O’Neill said:
If you have coins on exchanges, especially KyC coins, this is something you need to seriously consider. You will tie names to wallet addresses and all crypto sovereignty will disappear … unless you are smart and anon.
Another potential epicenter for an attack could be the PoW (Bitcoin Proof-of-Work) consensus protocol. O’Neill believes that narratives could be created about energy use, e-waste and other anti-environmental arguments that could lead the public to proof-of-stake projects. This could be “easier” to control by confiscating a large part of the total supply of a cryptocurrency.
In the end, I don’t know what’s going to happen and I can’t tell the future. This is simply my analysis of what I consider to be the obvious games against crypto of the “elite” and what outcomes they will seek. Will they succeed? Depends on. I think we’ll see a mix …
At the time of writing, BTC is trading at $ 56,670, up 4.5% on the daily chart. Higher timeframes are lost after this week’s crash.