Post
Topic
Board Bitcoin Discussion
Re: Crypto market manipulation by the government to cover budget deficit!
by
BlockExplorer24
on 21/03/2025, 07:56:35 UTC
How do governments control the economy, or specifically the inflation? You may want to say "by increasing interest rates", and although that is correct but it is only one of the tools they use. They control the inflation by controlling the amount of money people have in their pockets. Increasing interest rates means taking loans (loan means people have more money to spend) becomes more expensive and paying back the loans they already have become more costly as the payments go up. So people end up having less money to spend on other stuff which means demand comes down which means prices can potentially come down which then translates into decreased inflation. (that's right, this is how stupid economy as a science has become!!!)

Of course there are other usual ways to take peoples' money like taxes all of which are taking money out of people's pockets. But there is another way to basically "rob" them and that's by market manipulation. If the government can make people invest in something (eg. stock market which they've done before) and then they can crash that market in a way that a large number of people lose a significant amount of money, the end result is going to be the same.
It's the same game as interest rates and taxes. Money taken out of the pockets of the masses into the pockets of the government and the few "elite".

From the day Trump started namedropping bitcoin when he was begging for votes a couple of months ago, I was worried that the US government (that is now up to its neck in debt with a budget deficit that keeps growing) is now looking at the cryptocurrency market, a $3 trillion market that is very easy to pump and dump!
Considering how desperate Trump is for money to the point that he is now begging rich people in the world to pay him $5 million to live in the colony, I'd say the crypto market sounds like a good target to make some money from by manipulating it...

My theory becomes more realistic when we look at Trump's right hand, Elon Musk who is someone with a history of experimenting with crypto market manipulation using bitcoin and some altcoins like doge over the past couple of years!!!
And these days the desperate Trump is talking more about a crypto strategic reserve that includes a bunch of shitcoins in it... coins that can be pumped and dumped easier.
This theory taps into a real concern—governments have historically used financial markets to manage economic pressure. Crypto, being volatile and loosely regulated, can be an easy playground for strategic moves. 

But attributing market fluctuations solely to government intervention oversimplifies things. The market’s natural cycles, whales, and institutional trading all play major roles. If manipulation is happening, it’s not just politics—it’s big money games. 

The bigger question is: If crypto is truly decentralized, can any government really control it, or is this just another layer of market psychology at play?