The recent events in the cryptocurrency markets have led to the decline of Bitcoin’s price after reaching a local peak. The market was influenced by a series of positive news that created a euphoric sentiment among investors, such as BlackRock’s ETF application, Ripple’s victory against the SEC, and other developments.
However, Mark Yusko, Founder, CEO, and Chief Investment Officer of Morgan Creek Capital, has now answered if this was a natural market cycle or a result of some hidden agenda by insiders who bought earlier and sold at the top. He also talks about the role of BlackRock and other institutions in the market dynamics.
In an interview with the host of Altcoin Daily, Mark said that what really smart investors have done over the years is they actually go out and short a little bit of the asset and then tell everybody how crappy the asset is in interviews and stuff, and then go buy it when the price goes down.
So, if you were somebody who was on the verge of being approved for an ETF and you were going to take massive shares and you wanted to buy the asset cheap, you might be contributing to downward pressure in the short run. He thinks that it probably wasn’t BlackRock or others buying that was pushing it up, but rather people.
He still thinks that BlackRock will be the first one approved. One of the challenges of Bitcoin is that it is pretty closely held, so not much of the total market cap actually changes hands on a day-to-day basis.
Mark mentioned that people are getting back to fundamentals and saying that all the selling that was going to happen has happened and all of the liquidations and some leverage happened when they put Binance in the corner.