Stocks and Crypto Are Under Attack by Banks and Hedge Funds

Stocks and Crypto

Stocks and crypto are falling.

SPY stock (S&P 500) has fallen below $400 per share and is now down more than 17% this year to date.

Bitcoin is down more than 37% this year and has fallen below $30,000 again.

Banks and hedge funds have been selling off both the stock and crypto markets as the need for liquidity rises.

Will stocks and crypto go back up again?

Let’s discuss it.

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Banks and hedge funds tank the markets

Banks and hedge funds have been responsible for essentially every market crash in history.

But nothing has truly been done about the systemic risks caused by these financial institutions.

Today we’re seeing the collapse of both stocks and crypto.

Massive selloffs in the market are providing liquidity to institutions in order to keep their losing short positions open.

On top of these fire sales, the amount of shorting has increased to hedge against losses from last year’s bull run.

Short sellers lost billions of dollars last year when the ‘meme stock’ frenzy took over Wall Street.

Today, hedge funds are liquidating the markets to keep up with increased margin requirements this new year.

But at what cost?

Investors invested in great companies are losing money not because of business fundamentals, but because of the lack of regulation in the financial system.

Crypto developers say crypto crash was coordinated

LUNA and UST developers said this week’s crash was caused by a coordinated attack from hedge funds and big banks.

It comes as no surprise since hedge funds and big banks have been colluding to short specific stocks in the market.

The fed has opened investigations looking into these serious issues.

Goldman Sachs’ dark pools are currently under investigation, Archegos founder Bill Hwang was recently arrested with 11 criminal counts, and the list goes on.

Subpoenas went out to several hedge funds and banks earlier this year – one of the hedge funds under investigation is Citadel, according to Bloomberg sources.

Word is spreading on Twitter and Reddit and BlackRock and Citadel are responsible for the massive selloffs in the crypto market too.

Deeper due diligence is being done on this matter.

Citadel or not, coordinated attacks on securities is something the government should be taking seriously.

Will stocks and crypto bounce back?

It’s difficult to look ahead when the markets are bleeding, after all you are seeing your net worth drop quicker than it took for it to reach new heights.

If you’re worried about today’s markets, you might have been introduced to a short-term way of investing.

While certain plays could be short-term trades, majority of the market tends to be a long-term speculative game.

We bet that the companies we’re investing in will do great over the span of 10 years or so and let the markets go through the ups and downs, at least in the case of the stock market.

Crypto has and will always have greater potential than it has previously seen.

And crypto heads know this.

Is this the end of the stock and crypto markets?

Absolutely not.

What we’re seeing today has happened several times over the course of both markets.

After a climb, there’s always some setback that scares investors momentarily.

But if there’s something we can always learn from historic patterns, it’s that stocks and crypto have always gone right back up and set even bigger all-time highs.

Is now the perfect time to buy?

is now the perfect time to buy stocks and crypto?
Is now the perfect time to buy stocks and crypto?

It seems both stocks and crypto are having a difficult time finding a bottom.

And trying to time it has always proven that no one can time the markets perfectly.

Searching for a good entry point could just as likely end up hurting you if the markets were to suddenly go through a reversal.

Skilled long-term investors know that when the markets are red, you buy and hold.

Because the price of securities always goes up after a dreadful period of nonstop downtrend.

The upcoming reversal will have you wishing you’d have stocked up on stocks and crypto today.

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Related: Are Institutions Preparing to Close Short Positions in AMC?

12 Comments

  1. Jim Aherne

    One of the reasons I bought AMC was that I was afraid that the thousands of people that work for AMC would lose their jobs. Another is that I hate Hedge Funds I see what they are doing in the housing sector which is shoving up the cost of housing and forcing people to rent at very high rent. In the end of the day I hope to benefit from my investment. I have taken this opportunity to increase my AMC shares.

  2. ZZZman

    So weird, reminds me of a question on BR a few days ago. 😉—ZZZman

  3. jlarsen5860

    I look at the current events as if it’s the hedge funds/ financial institutions “Custer’s Last Stand”. They aren’t going down without a fight. They may be able to sway some into getting out of their positions. But what I’m hearing is most everyone is hodling, and even buying the dips. I don’t have a magic 8-ball, but my expectation is crypto will take a hit, and a short squeeze is soon to follow. But what do I know…

  4. Christopher

    All I wanted was a fair shake to invest in a company like AMC. With COVID-19 and people going out, enjoying the malls and going to the movie theaters it was a good time in April to make an investment I thought. I bought many shares, thousands of shares that’s the average price a little over $25 per share. Who would’ve ever thought that a bunch of hedge funds would collude together to drive the price of AMC down to where it is and it hit $10 today a share .
    This has caused emotional pain that lives with me 24 hours a day and what I did was try to get a fair shake I never thought in my life that this would happen a short attack, collusion by unsympathetic hedge funds and banks tearing down the whole market not thinking about the personal and psychological effects it has on individual people. G-d help me if there is no short squeeze for AMC

    • Robert

      My friend , You are not alone . You are lucky in the sense you got in at 25, Speaking for myself and a lot of other people got in, in the 40″s and higher. I know the angry and fear and the emotional roller coaster ride you are going through. But that is exactly what they ( Short Holders ) want you to feel that .. They want you to act on emotions not logic, They want you to start thinking you & I better get out before we lose it all .I know as I often have had those thoughts . DON’T ! The lower it goes,two things are happening a lot of us who bought in the 40’s and even higher are buying now to lower our average. Very soon it’s going to get very tempting for the shorts to cover. Some are thinking this is our chance ! I am sure they ( Short Holders ) all are talking to each other to coordinate when to cover. Trust me on this , It’s a no Brain’er one of the smaller Hedge funds stuck in this short position is going to start thinking they better cover and buy back first to save their own ass. Knowing someone has to cover first . We are getting close my friend and as soon as that happens which it will the rest will follow. Just hang in there. I just bought again today !

    • ZZZman

      You’re comment as good as your writing. No one talks about the psychological toll this takes on a retail investor. My experience has been similar to yours in that everyday it seems like I am seeing more and more of how the market functions and it sickens me. You would think one would get used to the fuckery but I’m still shocked regularly. I think about the SEC way too much, Gary talking about how GME investors lost their money because of “plumbing” problems and even worse 90-95% of retail or Ape investments go through dark pools. Meaning we made AMC the most popular stock on the planet but our investments make almost no difference in its price. I went from excited to learn about the market, to horrified, to nihilistic. I hope I you can recover and wish you well

  5. Bob

    That’s just the beginning of the worst Market crash in history…
    I mean did you check the news?!
    NOTHING is good so far, so you will be a FOUL to think that’s a reversal is in the horizon.

    • ZZZmanTheSleepGod

      You still standing by this? Crypto made a 180 and I made a grip. We definitely could be in a volatile bear market or Kenny and his buddies like BlackRock who colluded to pull massive amounts of their crypto and stock out. The crashed both markets and they puMped their cash back in yesterday and we saw crypto and stocks recovering. This play would make it possible for those diet bags to kick retailers in balls, buy their crypto and stock positions back at lower prices and cover their new margin requirements. I guess we’ll know sometime next week but I’m marking bank buying and selling crypto toooooonighhht!!

      • Bob

        Of course l am!!
        Do not judge the market on a daily basis, just watch it crash in the coming months….

  6. Frank Nez

    Let’s start a discussion! Leave your thoughts below.

    • Gorilla Grodd

      True! Grodd buying this tasty dip 🙂

      • Frank Nez

        🦍🦍🦍🦍 #APEARMY

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