If you didn’t hear about Bitcoin, Ethereum, Litecoin till now, you are probably living somewhere behind the moon.

Funny fact, scanning through social media after market sentiment let you think nearly everyone who is investing, trading or holding some cryptocurrencies wants to get “TO THE MOON” on every 6% price movement.

Regardless if you are a true hodler or new to the show catched by some hype articles and now thinking about allocating some of your capital, you might want to forget anything of what you heard about cryptocurrencies and how the world might benefit from it in the future.
So let us take a look at this moon mission from a distant perspective without the noise from the crowds of bagholders who are desperate promoting some weird live changing solutions for you.

Let us talk about the things that matter ….
MONEY, MONEY, MONEY FLOW

Money flow in the last 24 hours on the 17th of September 2019

Pretty amazing graphic but let us take a closer look into these fancy lines connecting USDT, USD and other FIAT currencies to crypto. We had today a approx. 6–12% price increase in some altcoins while BTC price was nearly flat. I have written down all the money flow in today’s cryptomarket.

Impressive we have 4.195 Billion USDT flowing into crpytocurrencies and on the other hand only 1.282 Billion real fiat currencies flowing in.

So more then 75% of today’s money flow are USD-Tether stablecoins.
Let us examine some facts about ….

Bitfinex and USD Tether

  1. The company Bitfinex behind USDT has admitted that the ratio is not 1 USD to 1 USDT as their slogan always was.
    Stuart Hoegner, a lawyer representing Tether, made it public that the company only has the fiat reserves to back about 74% of its USDT coins.
  2. The company Bitfinex and their balances are not audited by any regulatory agency. This makes it easy to artificially print USDT coins to manipulate market prices.
  3. The majority of all USDT coins is in hand of approx. 130 wallet addresses including exchange wallets.
  4. Bitfinex is still fighting with the New York attorney General. New Yorks supreme court has confirmed that it has jurisdiction over Bitfinex.

New Buyers

Less then 25% of the whole money flow is real fiat money. How much of this is NEW money coming into the market?

Small retail investors are not entering the market with USDT coins, they mostly enter the market on a KYC exchange and buy mostly BTC or ETH with fiat money. After acquisition of some crypto and due to tax issues, trading crypto on KYC exchanges may lead to some taxable evidence which some of small retail investors maybe want to avoid.
This leads some of them to No-KYC exchanges where mostly crypto USDT trading pairs are offered.

Wait a second … you say they are selling their crypto into an ONEDOLLAR Stable Coin that is only worth 0,74$ …. why?

Well maybe that´s the risk you have to take to avoid some taxable events.

This leads me into thinking that Bitfinex itself or some of the 130 wallets are draining the market by slowly exchanging every USDT coin which has an actual value of 0,74$ against cryptos which are bought by small retail investors with real fiat money.
Afterwards Bitfinex or someone of the major Tether traders are dumping the crypto again on the real fiat money market where mostly small retail investors are buying into the market with fresh fiat money.

Trend Data

We had over the last few days a price increase of 3%, 4% and today 6% to almost 12% in some altcoins. That has to be the time where every greedy small retail investor out there is buying because he doesn’t want to miss the moon rocket.

…. don´t be foolish, let´s take a look at the Data.

Google has gifted the world with a wonderful search engine which most web user are using somehow in their life. Let us check the trend data about ”Bitcoin”:

Google Trend Data 2004 to present day — Interest in Bitcoin is low while price slightly creates the Illusion of fomo in the market
Interest in Bitcoin for the past 12 months

Astonishing interest in the major crypto currency Bitcoin is low and descending while market price moves up. Not a good indicator for global adoption or bullishness of any kind.

Summary

As i am not your financial adviser you have to decide for yourself. For my personal taste the market is infected with fake USD called USDT with no or little interest of new retail investors bringing fresh money into this market.
Bitcoin and also other top cryptos have become a traders game where market movers and USDT trader are playing technical patterns and key levels. Any entry into this market should be well planed. You need to have a good risk management system in place which prevents you from major losses in case the market is pushed into a direction you wont expect.

After trading cryptocurrencies in the past two years, I recently sold the majority of my crypto holdings and started trading on etoro.com .
I share my technical analysis charts and my ideas on placing any trades in crypto and regular markets there. As a CFD broker it gives me also the possibility to trade crypto without holding the underlying asset in both directions.


This Article was also Published via Medium on https://cryptocurrencyhub.io/are-you-sure-you-want-to-invest-in-crypto-now-a-traders-perspective-96ea05b6cb8f

it was also covered by Chico Crypto on his Youtube Channel


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