Topic: A message from Wallstreet - page 2. (Read 3317 times)

Well if i were a betting man (which I am) I'd bet wallstreet does do this all the time in the "real" markets (granted this is illegal)...

You got to think scalability... It was easy to turn $500, $1000, or even $10,000 into 2x, 3x, even 10x that amount with bitcoins. If the "big boys" of wallstreet wanted to influence our market they would be looking to double $10 million, $15 million, truthfully it's usually $billions of dollars and the market cap for bitcoins just couldn't support that kind of move.

I just don't think bit finance cares that much about doubling $50,000 with bitcoins.

I agree, along with YouTuber "Bitcoin Bull", that it is unlikely Wall St or Big Finance played much rôle in the recent bitcoin bubble. If they dumped in serious money, they could've made it a real bubble - think four- or five-figure prices - and then crashed it back for fun. But that'd be like whales splashing about in duck ponds, and it doesn't really happen, does it?

Well I have to admit, as a trader by profession I spend WAY too much time at night trading bitcoins. I have a fairly small position. I'm not tech savvy enough and I respect the hackers/scammers too much to put any real size of money into coins.

I do however find trading alt currencies a great way to entertain myself after the markets close. I've almost doubled my position since I started "night trading" coins haha

Thanks for sharing!

Correlation of sentiments can be found even on daily basis. If something happening in stocks (noticeable rise or fall) it will be 90% repeated in bitcoin at evening after stocks close.

I have feeling that WS guys just press buy/sell buttons everywhere simultaneously.

Why in evening? They probably go home after hard trading day, opened a bottle of whisky, turned on porn and then... "Oh shit, forget to [buy/sell] bitcoin also". Turn computer on and repeat their stock actions during past day on bitcoin.

=)

Well my my opinion (and again this is just my opinion - so take it for what it's worth). The sell offs we've seen in stocks and even gold/silver have a very little correlation to coins. This entire sell of in my opinion is nothing more than stagnant coins (ones miners have been holding on to for years) finally entering the market.

I personally believe the market is being manipulated by big time miners vs. bit time investors (although one could argue those are 2 of the same).

Hi. Thanks for post. I have a question. Bitcoin copies well stocks sentiments. Not proportions, but just sentiments. For example, stocks 2% selloff few days ago powered bitcoin 70% plunge very well.

Why?

Great post, and I think a perspective that is easier for us newbies to understand. 

If you have been immersed in this for a long time, it seems like a bigger deal than it is to the outside world.  I can’t remember the name but it was interesting to watch the Canadian financier last week who said that he will now look at Bitcoin.  He said his starting point is to ignore any currency with a market cap of under 1 Billion, which makes complete sense if you are trying to invest even 10’s of thousands.

*I also posted this message on reddit, so sorry if it's a double post for some of you*

Full disclosure: I do have a position in bitcoins.

The reason I feel compelled to write this is because I am SO tired of hearing people bitch or speculate that “wallstreet” somehow in some way has been manipulating the market. As a representative of one of the big 4 wirehouses, I thought perhaps one or two of you might be interested in my perspective on bitcoins.

So I have been following bitcoins for a year or so now. Since about late March with the explosion of coverage I have made it my personal goal to survey as many people as I can in “the industry” on whether or not they too have any interest in bitcoins. The answer? Almost 0. Part in this is because the average age of a wallstreet employee is 62. I asked the simple question “hey, have you ever heard of bitcoins”. Even as recent as YESTERDAY the majority answer is “no” I get that about 80-90% of the time. I even called some people up in our FX department to ask – and even to my surprised the majority of the answers was “no”. I would say 1 in 5 respond “oh yeah I think I saw something about that in the paper yesterday - that look pretty stupid”. I’ve still yet to find another person in this industry that actually owns any coins (or at least would reveal to me they do).  

The notion that wallstreet is behind these “pump and dumps” is retarded. At its peak the bitcoin market cap was what $2.5 billion maybe $3 billion. Wow!!! The size of a mid-cap stock! Jee-wiz!! I could probably name 500 companies that none of you have heard of, that have a larger market cap than bitcoins. In the investment world a $2.5 billion market cap is nothing. The reality is, bitcoins act like a thinly traded penny stock. If a hedge fund manager really wanted to do a pump and dump, they would just use a small stock. The entry/exit is 1000000x easier than bitcoins.

I think back to playing Diablo 2 and trading the “virtual goods” in that game. When a Windforce went from $20, to $40, to over $500 for a single Windforce did anyone think “wallstreet must be involved”. No, we simply understood there was an extremely high demand in our very niche market and within the community there was somebody out there comfortable spending $500 on an item that doesn’t even exist (tell that to my Amazon!).  

But what about all the articles on yahoo.com/finance & cnn.com/money?!? No legitimate investor on wallstreet uses either of these mediums as a source for news. Even if this made the front page of Barrons or the WSJ – it would just be another one of those articles most people just skip over (like 3D printing, cloud technology, fracking in the US – all new and interesting technologies most investors don’t actually care about).

My last 2 thoughts…

Any mutual fund, hedge fund, or otherwise “fund” that takes people’s money for investments has to follow a prospectus. Yes, managers will bend the rules from time to time and invest outside of the box. Perhaps going 35% emerging markets when the prospectus says they can only go 30%. But there is NO CHANCE in HELL any of them would risk their firms asses to go so far outside the realm of what was set up to put real investors’ money in bitcoins. Yes, there was that ETF or two that was a “bitcoin ETF”. But hell… if you look deep enough I’m sure you can find a World of Warcraft ETF… There is one in practically every space.

Me personally, I think bitcoins are only the one of the coolest “new” technology, right up there with 3D printing (I’m a HUGE fan of 3D printing). I do own some coins myself. I am NOT trying to flip a quick buck. I do try and tell everyone I know about how great they are – and how they could possibly change the way we do commerce. I am not trying to bash bitcoins or create another thread on “why the bitcoin bubble is over”. I simply wanted to share my insight and possible clarify to some – the reasons why wallstreet is not involved.

I am more than happy to continue this conversation. On a complete side note – as a day trader I am more than happy to share in insight or prospective on any charts relative to BTC/LTC/PPC/TRC/NVC. I do REALLY enjoy trading alternate currencies as a hobby. Feel free to send me a PM.

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