Gemini

Bitcoin

ArbDoge AI

Read

Force

<ul>
 <li>On-chain data suggests a dominant influence of leveraged Bitcoin derivatives on its price.</li>
 <li>A staggering 98% of the volume is driven by Tether and insiders, overshadowing genuine investor activity.</li>
 <li>The looming potential of a massive market shake-up as this dynamic becomes unsustainable.</li>
</ul>
<p>Bitcoin, the poster child of the cryptocurrency world, is no stranger to price volatility. But recent on-chain data has thrown light on some startling revelations about the forces behind these price gyrations.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">All on-chain data shows that Bitcoin's price is being entirely influenced by leveraged paper Bitcoin derivatives, collateralized by stablecoins that are being created out of thin air. <br><br>Less than 2% of the volume represents actual investors buying, while 98% is from Tether and…</p>— WhaleWire (@WhaleWire) <a href="https://twitter.com/WhaleWire/status/1717534154504446038?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">October 26, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>A deep dive into the numbers indicates that Bitcoin’s price isn’t predominantly driven by the typical ebb and flow of investor sentiment. Instead, it’s being majorly swayed by leveraged paper Bitcoin derivatives. These derivatives, interestingly, are mostly collateralized by stablecoins like Tether (USDT), many of which appear to be created without adequate backing – essentially, “out of thin air.”</p>
<p>Such a situation prompts questions about the actual investor participation in the market. The data suggests that genuine investors, those buying Bitcoin as a store of value or for its potential future utility, constitute a mere 2% of the volume. In contrast, a whopping 98% is manipulated by activities tied to Tether and insiders, casting shadows on the market’s transparency and integrity.</p>
<p>This over-reliance on Tether, combined with the undercurrents of leveraged derivatives, sets the stage for potential vulnerabilities. Many experts believe that the current dynamics are a house of cards, which, when it falls, will result in a market event of monumental proportions. While the specifics of the fallout are yet to be ascertained, the consensus is clear – many in the crypto space are unprepared for the aftershocks.</p>
<p>It’s a reminder for all participants to tread carefully, conduct due diligence, and remain alert to the intricate web of market forces at play.</p>
<h4 class="wp-block-heading" id="h-recommended-news">Recommended News :</h4>
<ul class="wp-block-yoast-seo-related-links">
 <li><a href="https://cryptonewsland.com/arbdoge-ai-partners-with-floki-transforming-crypto-launch-dynamics/" rel="noopener noreferrer nofollow">ArbDoge AI Partners with Floki, Transforming Crypto Launch Dynamics</a></li>
 <li><a href="https://cryptonewsland.com/only-bitcoin-can-equalize-power-dynamics-says-michael-saylor/" rel="noopener noreferrer nofollow">Only Bitcoin Can Equalize Power Dynamics Says Michael Saylor</a></li>
 <li><a href="https://cryptonewsland.com/royal-bahamian-police-force-arrests-sam-bankman-fried/" rel="noopener noreferrer nofollow">Royal Bahamian Police Force Arrests Sam Bankman-Fried</a></li>
 <li><a href="https://cryptonewsland.com/whale-exodus-400m-bitcoin-withdrawn-from-exchanges/" rel="noopener noreferrer nofollow">Whale Exodus: $400M Bitcoin Withdrawn from Exchanges</a></li>
 <li><a href="https://cryptonewsland.com/gemini-to-launch-crypto-derivatives-platform-outside-us/" rel="noopener noreferrer nofollow">Gemini To Launch Crypto Derivatives Platform Outside US</a></li>
</ul>
<p>The post <a rel="noopener noreferrer nofollow" href="https://cryptonewsland.com/the-hidden-forces-behind-bitcoins-price-dynamics/">The Hidden Forces Behind Bitcoin’s Price Dynamics</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://cryptonewsland.com">Crypto News Land</a>.</p>

The Hidden Forces Behind Bitcoin’s Price Dynamics

Crypto News Land

Other articles published on Oct 27, 2023

HEX Coin Price: Is It Profitable to Buy HEX Despite the SEC's Charges, Especially as Bitcoin Pric...

Alameda Research and FTX Transfer Over $10 Million to Exchange Accounts

Binance CEO reportedly lost $12b amid regulatory problems

Roobet Celebrates Nippon Baseball Championship with $1,000,000 Free-to-Play Contest

What are the Short-Term Support and Resistance Levels in Bitcoin? IntoTheBlock Explained!

Latest Updates on the Top Artificial Intelligence Tokens: RDNT, FET, and AGIX

Join our free newsletter for daily crypto updates!