How Wall Street Created Paper Bitcoin to Control Price and Suppress Volatility

[Igor Pereira]

Traders, we need to have an uncomfortable conversation.

There's a huge problem with Bitcoin that nobody's talking about, maybe on purpose. The fundamental thesis has changed dramatically. The hard truth? 21 million is no longer the maximum supply.

By Igor Pereira Financial Market Analyst

If you think Bitcoin is still purely "offer vs. demand", you are operating a market that no longer exists. Wall Street didn't come into the game to pump your bags and make you rich. They bought Bitcoin to turn it into a tax-generating instrument, Just like they did with Gold in the '80s.

Below, we dissect the "Bitcoin Paper Multiplier" and why self-costing is now a market strategy, not just security.

In the past, 1 BTC = 1 BTC. Today, thanks to ETFs, loans and the derivative complex, a single Bitcoin can support multiple layers of price claims. Here's financial engineering in action:

1. Base: 1 Real BTC gets a custodian (using an ETF or large holder).

2. Hedge: Market Makers and funds use CME futures/options to hedge this exhibition.

3. The Leverage: Traders assume perpetual positions (perps) liquidated in cash that multiply the exposure to BTC without touching the spot.

4. The wrapper: The BTC can be blocked and tokenized (wrapped) for DeFi yield, creating another layer of claim.

5. Note: Banks issue structured products linked to the price/volatility of BTC. More exposure, more claims.

The Result: We have a coin. on-chain , but Five claims in the order book. The scarcity becomes irrelevant in the short term because the offer of "paper" is elastic.

They can print Infinite paper bitcoin to absorb demand by limiting rallying and forcing settlements whenever they need liquidity.

• The Strategy: That's how they destroyed Gold's volatility. When creating a massive derivative market, the price is no longer defined by physical delivery and is defined by contract negotiation.

• The Danger: While their coins are in a centralized ledger (corrector), they are being used as collateral to bet against You.

Can this be fixed? Yeah, but there's only one way.

• Draw: Take your coins out of the exchanges and take over the self-coustody (Self-Customy).

• The Effect: When you pull out a cold wallet, you remove the collateral they use to create the paper. You force the system to deal with real scarcity, not synthetic.

I've seen that same setup before. I'm not. Bearish in the long run, but I'm realistic about the short term.

My Vision: Remember, I warned you about the Bitcoin EXATO top in $126k in October. Whoever heard it saved fortunes.

1. Next Step: I'm preparing a new critical update on the BTC. The market is about to make a move that will catch most off guard.

2. The Signal: When I start allocating capital again, I'll say publicly here, like I always do.

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