Can we win against institutional investors?
So, I’ve been telling people since CME announced the bitcoin futures market that institutional investors will short BTC for massive profits. it makes sense that they would and it’s 100% what I would do if I wanted to make the most money possible. Of course it requires more capital than 99% of us can ever afford.
It’s simple really:
Buy a ton of btc and hike the price up to new ATH”s. When the futures market opens, short btc at its all time high. Dump all btc holdings causing a flash crash. Close short positions with huge profit. Rebuy cheap btc with all that profit.
Rinse, wash, repeat?
It seems I’m not the only one who see’s this writing on the wall. In fact it seems the idea is catching on pretty quick which is awesome as it gives people a chance to alter their strategies so as to navigate this possibility..
Now, with that said, at what point do we reach.a critical mass of people who plan to act on this? Does game theory kick in and the bankers instead just buy futures contracts instead of shorting them?
In that case they can drive the price up as everyone sells and make money by exercising the futures contract for gains on btc, all while lifting btc beyond the economic reach of the many.
In other words, it probably doesn’t matter what we do. The big money will do the opposite and make it hurt regardless..
My optimistic 2 cents.
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