The Simple Dynamic That Is Holding The Crypto Market Captive

The SEC Strikes Again

Many months ago I referred to what I perceived to be the beginning of a reign of terror, in regard to the SEC and its “relationship” with Crypto. Well, it certainly has proven to be just that, and there appear to be no signs of abating. Fortunately, we had the banking collapse, which acted as a strong countermeasure. Unfortunately, we can’t say the same for those affected by it.

There is still more pain to come in regard to the banking world and is likely to take place rather unexpectedly. However, in the meantime, Crypto has another challenge. Markets are manipulated for personal gain. This is a reality that every investor, not only needs to understand but embrace. In embracing this understanding, one will begin to incorporate this understanding in regard to analysis and decision-making.

This is exactly where the SEC is currently having a field day. Something that I have mentioned before is that the lack of clarity from the SEC in regard to Crypto is by design. Ultimately, it creates a wider net. In other words, if there are no predefined restrictions, they can simply be adjusted as necessary, in order to serve a specific agenda or motivation. This is very important to be aware of.

Remember, Coinbase went public and was listed on the NASDAQ. You might not be aware of what this process entails. This process takes place under the oversight of the SEC. On particular occasions, the SEC is required to provide additional scrutiny, in order to ensure that the entity is credible and meets all the predefined criteria. The first public listing of a Crypto firm should have ensured direct handling by the SEC.

Ask yourself how the SEC was not directly involved in this event. Furthermore, ask yourself how Coinbase could be operating illegally if it has been accredited for public listing. These are massive failures, and not on behalf of Coinbase, but on behalf of the SEC and the applicable regulatory bodies. This was one of Gary’s most significant failures, and yet nobody has drawn any attention to it.

Nevermind A weaponized Dollar

This has all played a role in the creation of a weapon that is now being wielded against the Crypto economy. Manipulation is the adjustment of the trajectory by outside “unnatural” causes. Markets respond to news and events all the time, which is why it makes it very difficult to discern between typical events and manipulation. However, when certain aspects are violated and even ignored, the message gets a little clearer.

Essentially, the SEC now has a weapon that can be used at any time to ensure the Crypto market remains in limbo. Eventually, market participants are going to have to shrug this nonsense off, if the Crypto market is to see appreciation above $30K. Even still, a break above $30K, or even $33K, in the future is likely to be met by another random SEC attack. Something else I have mentioned numerous times is to keep score.

If you are consuming content, are you keeping a record of who is right most of the time, as opposed to who is wrong most of the time? Probably not, which is another factor that falls into the same category. Once you have established a high level of inaccuracy in regard to content, it becomes rather obvious. However, the world of influencers and content creators evolves around the very same principles that decentralization was meant to eradicate.

For many, accuracy is of no real concern. They have their brainwashed followers, along with their carefully handpicked cartel participants. They ensure they are rewarded, and they reward those who help them achieve their end. With such a model, accuracy means absolutely nothing. If anything it’s an insult to trusting subscribers. However, a trader relies on accuracy and nothing else, which is what makes it so attractive.

Final Thoughts

Manipulation for profit and the furtherance of certain agendas is everywhere. Don’t think for a minute that the Crypto world is different. Understanding the dynamics at play, why, and how the market responds also reveals who and what is manipulating it. Essentially people and market participants are taken for a ride due to a lack of emotional intelligence. Markets require intelligence, data, analysis… as well as emotional intelligence.

In actual fact, I would go as far as to state that emotional intelligence is far more important than conventional intelligence. After all, markets are the accumulative representation of human behavior. Essentially, Elliot Wave Theory is very much reliant on the emotional and predictable responses of market participants. Crypto investors are going to have to “wise up” and rely more heavily on the fundamentals if we are to see a decrease in knee-jerk responses to every scream and whisper of the SEC. Catch you next time!

Disclaimer

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This article was first published on Sapphire Crypto.