Editor's Note: Recently, a Twitter article about Bitcoin and Tether has sparked widespread discussion in the English community, with a single tweet receiving over 800,000 views. The author, Jacob King, portrays himself as a staunch Bitcoin bear, pointing out that the Bitcoin market is manipulated by "insiders" like Tether and Bitfinex through false demand, circular buying, and unlimited money printing to maintain a price illusion. Jacob believes that the narrative of "government and institutional entry" is artificially created and is essentially a Ponzi scheme that will face a market collapse once liquidity crisis occurs.
Below is the original content (slightly edited for readability):
The entire Bitcoin story is a carefully orchestrated illusion, planned by insiders, aimed at making you believe that governments and institutions are "fully involved" - making you think the market's prosperity is driven by real demand.
But in reality, this is the biggest bubble in human history, destined to become the most severe financial scandal ever.
Ask yourself honestly: If Bitcoin is truly decentralized and truly so powerful...
Why are the same few forces always controlling the narrative, holding wallets, and influencing laws?
It's all smoke and mirrors. Here's the evidence.
El Salvador's so-called Bitcoin "investment" is a carefully manufactured illusion.
There's absolutely no evidence of any purchase. The latest blockchain data shows that out of 6,114 Bitcoins in their treasury, 6,111 were not bought at all - they were directly transferred from Bitfinex and Tether.
Undoubtedly, they are behind this. Oh, and Tether personally drafted all of El Salvador's Bitcoin-related laws.
This is not "national-level adoption" but a liquidity money laundering plan disguised as government action, designed to make retail investors think "even the government is buying, so you should too".
No wonder the corrupt Bukele is willing to cooperate. Tether bribes everything, using El Salvador as a puppet.
Bukele harvests media exposure, Bitfinex gains liquidity, and Tether gets another lease on life.
Those who haven't kept up might not know: El Salvador has since quietly abandoned its Bitcoin legal tender plan because the entire experiment completely failed. The Chivo wallet is actually bankrupt and closed, with usage plummeting 98.9% after launch.
Not even Tether and its internal network can save it - because there's no real market demand.
Jack Mallers is a core figure in this circle - extremely closely connected to the Tether-Bitfinex operating system.
His new company, Twenty One Capital, claims to be making large-scale Bitcoin investments. But on-chain data shows that up to 14,000 Bitcoins (over $2 billion) come directly from Tether's reserves.
They claim massive market demand, but the only recorded investor is Tether - a company found to have lied to investors and committed fraud. Too suspicious...
This is not an investment, but internal accounting - another "shell company performance" in this massive liquidity circus. Mallers' other company, Strike, has long been closely tied to Tether. 100% of its payment transactions depend on Tether.
This is not innovation, but a variant of monopoly.
Michael Saylor is playing the same reflexive Ponzi cycle game.
I'm certain Saylor is connected to this insider circle supporting the entire situation. His company MicroStrategy is not "innovating" at all - it's one of the most aggressive, highly leveraged stocks in the entire market. Their so-called "Bitcoin investment" is actually just milking Bitcoin.
Their routine is very clear:
Financing → Buy Bitcoin → Pump price → Refinance → Repeat cycle.
This is a closed-loop fraud built on "hope" and "hype".
What Saylor is advocating is not some "hard currency" concept, but trying to prop up this scheme a bit longer - to grab the most benefits before the music stops.
Tether and Bitcoin are falling into a circular endorsement trap - Tether supports Bitcoin, and Bitcoin in turn supports Tether. This structure is a time bomb ready to explode at any moment.
At the Bitcoin 2025 conference, Bitcoin extremist and author of "The Bitcoin Standard" Saifedean Ammous finally said what everyone was thinking:
"Tether is quietly accumulating Bitcoin, continuously expanding its reserves. One day, its Bitcoin reserves will exceed its dollar reserves. By then, Tether won't just maintain its peg, it might even appreciate. Imagine: a 'stablecoin' worth more than $1, backed not by US debt, but by Bitcoin."
This is almost a replay of Mt. Gox and Lehman Brothers' collapse: once liquidity breaks, this house of cards will instantly collapse. No real asset support, just a pile of unstable mutual endorsements.
Get ready - an epic collapse is on its way.
At the Bitcoin 2025 conference, Tether announced it now holds over 100,000 Bitcoins and 50 tons of gold.
It sounds very suspicious. Let's look at their operation process:
1. Tether creates something out of nothing, printing millions (or more) of USDT out of thin air;
2. Use these newly printed Tethers to buy Bitcoin, raising the price;
3. Sell excess Bitcoin for dollars and gold as "reserves";
4. Then use these reserves to show they are "legal and compliant";
5. Meanwhile, the Bitcoin extremist crowd below cheers, thinking everything is real.
Tether's critics have actually been right all these years. We pointed out years ago that Tether was quietly buying Bitcoin, which they denied at the time. Now, they're not even pretending anymore. Tether is the only major buyer in the entire Bitcoin market - everything depends on its continuous money printing and bag holding.
This is the ultimate "house of cards". Once it collapses, no one can save it.
The so-called "institutional Bitcoin demand" is just a passing trend.
On June 2nd, Bitcoin spot ETF saw a net outflow of $267.5 million, and this is the third consecutive day of large fund withdrawals. This is not a random occurrence - this trend has been ongoing for months, indicating that institutions are rapidly retreating.
As early as the end of 2021, Bitcoin ETF fund inflows were in the billions, at the market's peak frenzy. But since then, institutional interest has plummeted by over 91%. These continuous fund outflows reflect declining market confidence, tightening regulation, increased volatility, and unclear profit prospects.
Institutions were supposed to be the "pillars" of Bitcoin prices, but now they're collectively running away. The "institutional entry" was just hype and FOMO at the time. Smart money has already quietly exited.
To make matters worse, even the currently "crypto-friendly" SEC is becoming cautious. They are reportedly hesitant to approve more Bitcoin spot ETFs from institutions like Bitwise and Grayscale, citing weak anti-fraud protection mechanisms.
The entire Bitcoin ecosystem is actually just a "smoke and mirrors" game. This industry is not supported by real demand, but rather constantly manipulated by insiders (such as Tether and Bitfinex) - they repeatedly move coins and liquidity, carefully creating a false impression of "adoption" and "market enthusiasm".
They have constructed a powerful narrative system that successfully convinces the public that "governments and institutions are massively entering the market". But the reality? This is just an elaborate pump and market support scam.
If you are clear-headed enough to see through the noise, you will realize how dangerous this is. Bitcoin's price is not driven by natural growth or real institutional demand, but almost entirely by Tether's unlimited money printing and then buying BTC to maintain the price. Currently, over 90% of Bitcoin buy orders are backed by Tether's funding. Once the US government (currently pushed by the Trump camp) introduces strict regulation on stablecoins, and this "liquidity tap" is shut off, the Bitcoin market will face a brutal liquidation.
Bitcoin will not only fail to break $100K, but may even drop below $10K. The so-called "institutional demand" has long disappeared, and insider players are gradually being exposed. This artificially supported illusion is destined not to last long.
This entire narrative is a human-made fantasy, a house of cards waiting to collapse with the wind of reality.
You must be warned: This is not a "future hard currency", but a financial bomb counting down.
Welcome to join BlockBeats official community:
Telegram Subscription Group: https://t.me/theblockbeats
Telegram Discussion Group: https://t.me/BlockBeats_App
Twitter Official Account: https://twitter.com/BlockBeatsAsia
