Imagine waking up one day and noticing that Bitcoin’s value plummeting over 10% in a single day, dropping to a startling $40,800.
Mad, dissapointed, amazed, confused? Trust us, we hear you. This was the reality on January 3rd, and we were as angry as you are!
But what was the catalyst behind this sudden nosedive? On the very same day, Matrixport, a key player in the crypto world, released a report to their clients. This report wasn’t just another market analysis – it carried a prediction, nobody asked for. Analysts speculated that the much-anticipated spot Bitcoin ETF proposals, seen by many as a game-changer for cryptocurrency legitimacy, might face a rejection from the US Securities and Exchange Commission.
Read More: Jihan Wu, Matrixport, Bitmain, and SEC Rejection: Dots Tied
Fair Forecast or Dirty Manipulation?
On Tuesday, January 2nd, Matrixport analyst Markus Thielen issued a devastating forecast regarding the impending approval of Bitcoin spot ETFs. The analysis notes that despite frequent meetings between ETF applicants and SEC staffers, resulting in resubmitted applications, none of them meet the crucial criteria necessary for SEC approval. They anticipate this requirement might be met by the second quarter of 2024. Markus expects all proposals to face rejection in January.
The forecast takes into account the political landscape within the SEC, highlighting the leadership dominance of the Democrats and Chair Gary Gensler’s cautious stance on cryptocurrencies. This report paints a picture so lively, you’d think they had a direct line to the SEC’s inner thoughts. Spoiler alert: they don’t!
There’s been far too much fraud and bad actors in the crypto field. There’s a lot of non-compliance, not only with the securities laws, but other laws around anti-money laundering and protecting the public against bad actors there.
SEC Chief. Source: TheBlock
Oh, let’s all stand and applaud the genius of his remarks on stricter compliance. It’s as if he’s single-handedly saving us from ourselves, isn’t it?
But, let’s be real – this feels less like prudence and more like he’s itching to slam the door on Bitcoin spot ETFs. Because why would we need innovative financial tools in a modern economy, right?
If the SEC gives the thumbs down, we’re not just talking about a little oopsie in the market. Oh no, we’re gearing up for a grand 20% plunge in Bitcoin prices. That’s right, we might just freefall back to the ‘good old days’ of $36,000/$38,000 prices. It’s like watching a financial domino effect, only you’re one of the dominoes.
Dubious Excuses
In a tweet, Matrixport co-founder Jihan Wu, also known in crypto circles for his company Bitmain, the leading manufacturer of ASIC miners, attempted to justify the analyst’s report.
He claims that the soothsayers, ahem, analysts at Matrixport, work independently, offering their perspective without any market influence from the leadership (sounds like a lie to us!). He humbly admitted that the rest of the team’s, and he just casually glanced over their recent report.
Furthermore, he also emphasized that the report was crafted for Matrixport clients, and its widespread dissemination in the media wasn’t planned and was beyond his control. It might have sounded convincing if Jihan’s name hadn’t already been linked to whispers of Bitcoin Cash shenanigans in the past.
Jihan Wu: A Titan of Crypto, with Shadows in His Wake
Jihan Wu has carved a unique path in the digital gold mining rush, but not necessarily a good reputation. Recognizing Bitcoin’s potential early on, Wu, along with his co-founder Micree Zhan, established Bitmain in 2013. The company revolutionized mining by developing Application-Specific Integrated Circuit (ASIC) miners, specialized hardware significantly boosting current miners’ efficiency. Bitmain’s dominance in this field propelled them to the top of the mining game, granting Wu immense influence within the crypto market.
The Bitcoin Cash Hard Fork: Scalability Issues, Contentions, and Price Manipulations
The Bitcoin Cash hard fork in 2017 was a turning point in the history of cryptocurrency, marked by changes and manipulative actions.
Background
As Bitcoin gained popularity, transaction fees and processing times escalated, sparking scalability debates. Two camps emerged:
- The big block camp, led by Jihan Wu and advocates like Roger Ver, championed increasing the block size (the amount of data processed per block) to handle more transactions faster and cheaper.
- The small block camp, favored by developers and many Bitcoin exchanges, supported solutions like Segregated Witness (SegWit), optimizing data storage without altering the block size.
Wu, a strong proponent of scaling through block size, has been a vocal supporter of BCH. This position pitted him against supporters of SegWit, a softer scaling solution, causing a rift within the community.
SegWit vs. BIP
Wu’s resistance to SegWit stemmed from fears of centralization, as he worried it would grant developers more power than miners. He advocated for alternative scaling solutions like BIP98, adding more fuel to the fire. These disagreements highlighted Wu’s desire to bolster miner control over the Bitcoin network protocol upgrade, drawing both criticism and support.
In November 2017, disagreements reached a critical point. After failing to reach a consensus, the Bitcoin network split. The original chain remained, and the idea of the big block camp materialized in the form of Bitcoin Cash (BCH).
Jihan Wu’s Role: Propaganda and Influence
As a major Bitcoin miner and co-founder of Bitmain, Wu wielded influence. He has been a strong advocate for BCH, using his resources and public platform to promote its adoption. While his advocacy was sincere, it also drew accusations of self-interest, as a larger block size could potentially benefit miners like Bitmain.
Potential Price Manipulation
Rumors swirled about attempts to artificially inflate the price of BCH during the fork. Some speculate that Bitmain, with its mining power, directed hashing power to the BCH chain, temporarily boosting its perceived value. Others suspect coordinated buy and sell actions creating a false impression of demand.
Evidence and Refutations
Sure, there’s no smoking gun directly linking Jihan Wu to any under-the-table moves – our man is squeaky clean on paper. He’s the picture of innocence (not for real tho), brushing off any suggestion of manipulation like crumbs from a table. According to him, the price fluctuations are just the crypto market being its usual, unpredictable self.
Looking back at his past escapades, taking Wu at his word is like trusting a cat to guard a goldfish. It’s not that you want to doubt him, but let’s just say that if his history ofter repeats itself. Believing everything he says? That’s a leap of faith. So, do you also feel like you need a pinch – or maybe a handful – of salt when digesting Wu’s narratives?
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