Bitcoin, The Great Reset and Systemic Failure
Bitcoin, The Great Reset and Systemic Failure Author: Tom Luongo for Gold, Goats and Guns
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It’s been a whirlwind week in the cryptocurrency world. There have been a rash of news items all pointing towards the same thing — attempts to rein in alternatives to the future of central bank digital currencies (CBDC) that are quickly creeping up over the horizon.
It started with the CFTC’s indictment of the owners of crypto-exchange BitMex after more than a year of investigation last week.
Even if its founders are not convicted, this might still spell the end of the embattled BitMEX. In tandem with the criminal indictments, the CFTC also launched a civil action against the BitMEX network of companies and its founders.
The formal counts on which the CFTC seeks relief are:
1. Executing futures transactions without registering with the CFTC
2. Offering illegal off-exchange commodity options
3. Failure to register as a futures commission merchant
4. Failure to register as a designated contract market/swap execution facility
5. Failure to supervise in relation to its lack of KYC and AML procedures and failing to ensure that its partners and employees lawfully handled BitMEX accounts
6. Failure to implement KYC and AML procedures as required under the CEA
That put a lid on a nascent rally in Bitcoin which was beginning to challenge $11,000. The net result was a $500 move down and killing any potential short-term bullish momentum. It should have seen a breakdown below support at $9800 (orange line, see chart) but that didn’t happen.
Since then Bitcoin has been bouncing around between $10,400 and $10,900 without any real direction, continuing to coil and consolidate.