This is incorrect. Those who are blaming the paper markets for attempted take down this past week do not fully understand what is happening. Financing and costs to carry are accelerating higher. Option volatility premiums going though the roof. Illiquidity is setting in. Participants are reducing size of positions. This is having a generational effect on the paper markets.
This is not manipulation, it is business that has turned into survival for some firms.
SLV ETF Alert
Borrowing fee to short shares of SLV ETF attempting to retest the summer highs. Unlike during the summer when we had EFPs in elevated contango, the issue now is sourcing bars to create shares as the float in London is shrinking due to overall ETF demand. This is evident is the accelerated shrinking contango.
There are other signs of stress. Volatility has been rising in SLV options. This may point to elevated demand to cover or increase hedges by option market making participants.
Options markets have become a larger part of this market and brokers/dealers are making it ever easier for the investing public to participate.
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Government shutdown risk adds momentum to precious metals as gold reaches new record highs. Phil Streible breaks down today’s moves and key price levels to watch. #Gold#Silver#PreciousMetals#GoldFutures#SilverFutures https://t.co/334c4l630d
Silver has been a market that everyone has been talking about. How is it possible for Gold to trade north of $3000 and Silver not to be at $40 or $50 by now? #Gold#Silver#PreciousMetals https://t.co/nyUPgSFgNq
**Tether Alert**
The idea that Wall Street is embracing Tether and Bitcoin is much clearer.
The more Tethers are being bought, the higher Bitcoin goes. The higher Bitcoin goes the more Tethers are being bought.
As Tether grows in size the more US Treasury debt is being purchased by Tether. Tether is now holding over $84 Billion in US T-Bills up from $28 Billion in 2022, Tether is becoming a substantial buyer and funder for US Government debt.
Oddly as the Bitcoin community is heralding the digital asset space as the price is surging, what they may not realize is that bitcoin is being used to attract funds to Tether which is funding and backed by US Treasury debt.
The idea that the new Presidential administration is supporting Crypto is in essence to find another buyer for US Treasury debt. By attracting investors, Wall Street makes money and fees by creating a new digital industry which adds depth and liquidity for this digital asset class.
At the end of the day, this industry is being born to help support US government deficit spending and Treasury issuance.
Is there any wonder why a large entity has had a free pass by not providing Audited Financials over the years?
If Tether is a growing buyer of US government debt and one of the largest funding vehicles for Bitcoin, then any material price decline/volatility in US Treasuries may have a direct impact on Bitcoin's price.
Is Bitcoin really an alternative asset or dependent on the US Legacy system?
Do not take my word for it, the video below adds much more clarity.
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🚨BREAKING 🚨
Target stock has just COLLAPSED to its lowest trading value in a YEAR with no end in sight.
For the first time in my life, common sense Americans are standing up for themselves and committing to ACTION.
We are the majority. We are winning. We’re just getting started.