Is Wall Street Trying to Push Bitcoin's Price Down to $40,000?

Bitcoin briefly fell below $60,000 on Monday after news that defunct bitcoin exchange Mt. Gox is set to distribute around $9 billion worth of bitcoin

Bitcoin price dropped below $60,000 following news that bankrupt crypto exchange Mt. Gox will begin distributing nearly $9 billion in bitcoin and bitcoin cash repayments to creditors starting July.

But recent analysis suggests that Wall Street investors are actively working to push the price of BTC even lower — to around $40,000. Here’s how.

Bitcoin price ranges

Historically, the price of bitcoin has ranged from highs of $73,000 to lows of $55,000. These price points are significant because they offer attractive entry and exit opportunities for institutional investors, who are known to trade in large volumes and can substantially influence the market.

According to Aaron’s analysis, Wall Street aims to push bitcoin’s price down from these highs to more attractive entry points for future investments.

However, the recent launch of bitcoin exchange-traded funds (ETFs), including those from major players like BlackRock, is seen as a double-edged sword.

While these ETFs represent institutional acceptance, they might also be used strategically to lower bitcoin's price.

Peter Thiel’s changing views

Moving on Aaron also analyzed the recent statement by Former PayPal CEO Peter Thiel, a prominent investor, and Bitcoin supporter. Thiel expressed skepticism about Bitcoin’s future growth and said that he is not buying Bitcoin as of now. A notable shift from his previously bullish stance.

Thiel had previously championed Bitcoin as a revolutionary technology that could challenge traditional financial systems. He now questions whether Bitcoin still holds the same potential, suggesting that the cryptocurrency may have been co-opted by institutional forces rather than maintaining its original anti-establishment ideals.

Despite these reservations, Thiel’s investment firm, Founders Fund, has profited significantly from Bitcoin investments and recently doubled down with a $100 million purchase during a price dip.

Institutional investments and market sentiment

Finally, Aaron connects the dots between institutional investment strategies and broader market trends.

He highlights bitcoin’s recent market volatility, including a significant price drop and a subsequent recovery. This volatility is framed as a tool used by Wall Street to manipulate the market.

He further discusses how Wall Street’s control over ETFs and regulatory actions might be used to push bitcoin’s price lower. For instance, the delay of the spot Ethereum ETF is seen as part of a broader strategy to influence the cryptocurrency market.

The “$40K Bitcoin” theory

Interestingly, Aaron’s analysis suggests that bitcoin’s price may experience short-term fluctuations, including a potential drop of around $40,000.

While the market is expecting a rise, Institutions are waiting for Bitcoin to hit $40,000 to buy the Bitcoin.

However, despite these market manipulations, the analyst believes that the long-term trend for bitcoin remains positive. The argument is that Wall Street’s efforts are a temporary measure to correct the market before a significant rise in bitcoin’s value.