On-chain analyst Willy Woo says Bitcoin (BTC) price is being suppressed by the political agenda
Popular on-chain analyst Willy Woo says Bitcoin (BTC) price is being suppressed by a political agenda.
Woo shares a thread with his one million Twitter followers that, with futures contracts, it’s now theoretically possible to sell an “unlimited” number of Bitcoin, even though BTC’s supply is capped at 21 million.
“The door is open for the futures markets to control the BTC price.
Now comes the CME, they have launched a BTC casino where you can play with USD.
Wall Street hedge funds loved that.
What are the limits for selling BTC now?
Unlimited. Fiat is unlimited.”
With the way the futures markets are constructed, Woo says big players now have the ability to depress Bitcoin’s price simply by applying constant selling pressure on BTC.
“BTC doesn’t need to be killed. It just takes enough shorts in the system to suppress the price.
Without a large market cap, BTC cannot make a global impact.
Currently, the arc of SEC policy has been to increase futures liquidity and dominance by approving several futures ETFs (Exchange Traded Funds) and disapproving all spot ETFs.
This is now a political game.”
The US Securities and Exchange Commission (SEC) has approved numerous futures-based Bitcoin ETFs while rejecting countless bids for a spot-based product.
Industry advocates have long argued that futures-based ETFs are more suited to price manipulation than spot products.
SEC Commissioner Hester Peirce has been a vocal advocate of a spot-based ETF, saying the regulator holds bitcoin to a different standard than other tradable assets.
“It’s about time the Commission stopped categorically denying exchange-traded crypto products. Commission opposition to a spot Bitcoin ETP becomes almost legendary…
The reasons for this opposition to a spot product are hard to understand, beyond recognizing that the commission has decided to subject everything related to bitcoin – and presumably other digital assets – to a stricter standard than it has for others Products applies…
The reasoning underlying the Commission’s rejection of spot bitcoin ETPs (exchange-traded products) is itself general and conclusive, making it difficult to know how approval might be achieved.”
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