Bitcoin – An epic crash is on the way

The article was written last night, everything was fine when I wrote it. I woke up in the morning and had a big drop. Why fall? 1. Conspiracy theory articles spread widely ""Bitcoin Conspiracy Theory": Tether is creating the biggest bubble in financial history" 2. Beijing Public Security first created the token disposal mechanism for the case: sold through the Hong Kong Compliance Exchange and handed over to the treasury 3. Pumpfun and OpenSea attempted to issue coins, causing uneasiness 4. Singapore's regulatory policy was introduced 5. Musk and Trump broke 6. Circle's listing absorbed funds on the market 7. It has risen too long, and it has been almost a month since it was $100,000. The following is the main text. Some people say that I always say good things about Bitcoin, and the account may not be guaranteed. Today I will share an article about Bitcoin conspiracy theories abroad, "Bitcoin Conspiracy Theory": Tether is creating the biggest bubble in financial history", hoping to extend his life. This article argues that the Bitcoin market is not a free, transparent, decentralized financial system driven by real demand, but a Ponzi structure carefully controlled by behind-the-scenes interest groups such as Tether (USDT issuer), Bitfinex (famous exchange). The author of the article "Jacob King" calls the entire Bitcoin ecosystem "the biggest scam in the history of human finance". Its basic logic is a closed-loop game of "circulating money printing and pulling out the market - creating narratives - guiding retail investors to take over - harvesting". The following is a detailed breakdown of its main views: 1. The price of Bitcoin is manipulated by Tether's "money printing". The article believes that the current Bitcoin price is not supported by natural buying or institutional demand in the market at all, but is a false liquidity created by USDT issued out of thin air by Tether. Tether continues to issue additional stablecoins, and then put these USDTs into the market to buy Bitcoin through internal related accounts or partners (such as Bitfinex, Jack Mallers, MicroStrategy, etc.), raising prices, and creating the illusion of a hot market. The entire Bitcoin market has formed a closed loop of "self-cycle": Tether prints money and buys coins → rises in currency prices → decorate the balance sheet with book profits → Continue financing or additional issuance → Repeat the cycle. 2. El Salvador’s “national adoption” is an illusion, and it is a political guise for cooperating with the operation. "Jacob King" pointed out that El Salvador’s becoming the first country to use Bitcoin as a fiat currency is not a real “national adoption”, but a marketing method led by Tether. He cited on-chain data that of the 6,114 bitcoins in the treasury of Saskatchewan, 6,111 were transferred directly from the Bitfinex/Tether account and not really bought in the market. Tether also personally participated in El Salvador’s Bitcoin legislation, which was behind the creation of a signal of “government support for Bitcoin” through political infiltration, bribery and packaging media narratives, inducing global retail investors to enter. This experiment has long failed: the official wallet Chivo has almost gone bankrupt, with its usage rate plummeting by more than 98%. 3. The core trading characters are "linked together" and forming a liquidity game alliance article. Named digital industry leaders is a key link in the Tether trading chain: Jack Mallers (founder of Strike and Twenty One Capital): On-chain data shows that almost all the 14,000 BTC held by its "investment company" comes from Tether's reserves, and only Tether is the only one. Its payment system also relies 100% on Tether, which is a typical internal transaction closed loop. Michael Saylor (founder of MicroStrategy): His company purchases Bitcoin with high leverage financing. On the surface, it is bullish on Bitcoin, but in fact it is constantly creating price illusions and making profits through the cycle model of "financing → pulling up the market → refinancing". These roles seem independent, but actually form a highly coordinated interest group that manipulates prices, controls voice, and packages the appearance of a "technical utopia" to attract market attention. 4. A dangerous "mutual endorsement closed loop" between Bitcoin and Tether. The article points out that Tether and Bitcoin are no longer a one-way relationship, but a highly dangerous mutual support system has been formed: Tether relies on Bitcoin as a "reserve asset" to prove the legitimacy of its anchoring, and the price of Bitcoin is maintained by Tether's continuous buying. Once any link in this closed loop collapses—for example, Tether can no longer print money, or reserve assets plummet, or regulatory intervention, the market will collapse instantly like a house of cards. Especially alarming is that Tether currently claims to hold more than 100,000 BTC and 50 tons of gold. The article believes that this is a "Ponzi vertex signal": they buy assets with printed USDT, and then use these assets to promote "having real reserves", and ultimately maintain their legitimacy in the entire market. This is a typical self-provement scam. 5. Institutional funds are retreating rapidly, and the bull market narrative collapses. The author pointed out through data that Bitcoin spot ETFs have continued to experience net outflows of funds in recent months, with US$267 million flowing out in one day on June 2 alone. This is the third consecutive day of withdrawal of funds, which shows that the so-called "long-term institutional allocation demand" is actually a short-term behavior driven by the past FOMO narrative, and is now rapidly disintegrating. The fanaticism at the end of 2021 is no longer there, and institutional funding interest has declined by more than 91%. Even the US SEC, which originally favored encryption, has begun to take a cautious attitude towards ETF approval, reasons including: insufficient anti-fraud protection mechanisms and excessive market manipulation risks. This also once again confirms the core conclusion of the article: the so-called "institutional entry" is only part of the bubble narrative and is not sustainable. 6. This is a "financial illusion" controlled by insiders. The article finally points out that all the major narratives of the Bitcoin market (institutional entry, national adoption, long-term reserves, decentralization, safe-haven assets, etc.) are carefully planned "collective fantasy". The essence is the "smoke and mirror" game created by Tether and its alliance through media, politics and on-chain operations. "Jacob King" warned that more than 90% of the current market buying can be traced to Tether's money printing. Once the US regulation of stablecoins is implemented (such as the policies that the Trump camp is promoting), this "liquidity faucet" will be closed, and Bitcoin will experience a sharp decline, and may even fall below $10,000, completely exposing this "financial empire built by false demand." Conclusion The core conclusion of "Jacob King" is that Bitcoin's current high valuation and market prosperity are a scam that is forced to support by Tether's USDT. Once this fragile balance is broken, the consequences will be no less than the systematic collapse of the 2008 financial crisis. This is not an objection to the technology itself, but an exposure of the hidden manipulation and fraud logic in the current ecosystem. He called on market participants to stay awake and not be confused by "faith", "narrative" and "government endorsement". Nangong Comment 1. What is said in the article is not entirely a sensation. Many of them are real bull market chaos, bull market leverage, and part of the bull market bubble. 2. After Bitcoin hits a peak in 2025-2026, there will inevitably be a long deep callback across time. This is an economic law. But it cannot be described as a systematic collapse. Because the four-year bull and bear cycle has been practiced three times, just another one. 3. I pay more attention to Bitcoin itself. Is Bitcoin’s main network safe? Are Bitcoin’s coin hoarding parties safe to use cold wallets to hoard coins? As long as there is no problem with Bitcoin itself, other news is good news. Even if large exchanges run away or stablecoin collapses, it will only further spread Bitcoin's reputation and ideas. You lose money, it’s not that there is something wrong with Bitcoin itself, but that you are not storing Bitcoin by yourself with a cold wallet. 4. The next bull market, the next bull market. There will also be greater leverage and greater bubbles, and all madmen will come out to perform. There may be a president running away with Bitcoin, and there may be a cabinet collapse because of Bitcoin. There is no need to make a fuss.