Good afternoon investors!
Firstly, I would like to start this publication by showing a historical scenario and I would like your opinion in the comments, whether or not the story reflects today.
An example of a strategy to hold down the price of an asset is what occurred during the "Big Short", an event that preceded the 2008 financial crisis. Some investors realized that the US housing market was overheated and filled with high-value mortgages. risk, known as "subprime". They then began making bets that the housing market would collapse.
These investors, through a series of complex financial transactions, were able to create positions that would profit if home prices and mortgage values fell. However, large banks and financial institutions that had an interest in keeping the real estate market booming began to take measures to hold down asset prices.
One of the strategies used by these institutions was the massive purchase of securities backed by subprime mortgages, in an attempt to maintain demand and, consequently, the prices of these assets. However, this strategy ultimately failed as the housing market collapsed and asset prices plummeted, resulting in large losses for many of these institutions.
Would you like to know how to use this technique with cryptocurrencies? Write "I want" in the comments and follow me so you don't miss any posts. #MemeCoinRevolution