"Bitcoin Conspiracy Theory" that has been flooded with the external network: Tether is creating the biggest bubble in financial history

Original author: Jacob King

Source:Jacob King X Account

Compiled: zhouzhou, BlockBeats

Editor 's note: Recently, a Twitter article about Bitcoin and Tether has caused widespread discussion in the English community, and a single tweet received more than 800,000 views. In the article, the author Jacob King transformed into a firm bearer of Bitcoin, pointing out that the Bitcoin market is manipulated by "insiders" such as Tether and Bitfinex, and maintains the false price of the price through false demand, circular buying and unlimited printing of money. Jacob believes that the so-called "government and institutional entry" is an artificial narrative, but it is actually a Ponzi scheme. Once a liquidity crisis occurs, the market will face a collapse.

The following is the original content (to facilitate reading comprehension, the original content has been compiled):

The entire story of Bitcoin is a carefully choreographed illusion, curated by insiders, aiming to convince you that governments and institutions are “full participation” – making you think that the prosperity of this market is driven by real demand.

But in fact, this is the largest bubble in human history and is destined to be the worst financial scandal ever.

Please ask yourself: If Bitcoin is really decentralized and really so powerful...

Why are the same forces always controlling narratives, mastering wallets, and influencing the law?

This is all a trick, the following is the evidence.

El Salvador’s so-called Bitcoin “investment” is a carefully created illusion.

There is no evidence of purchase at all. The latest blockchain data shows that 6,111 of their 6,114 bitcoins were not bought at all - but were transferred directly from Bitfinex and Tether.

There is no doubt that they are behind the scenes. By the way, Tether also personally drafted all Bitcoin-related bills in El Salvador.

This is not "national adoption" at all, but a liquid money laundering plan disguised as a government act. The purpose is to make retail investors mistakenly think that "even the government is buying, you should buy it too."

No wonder the corrupt Bukele was willing to cooperate, Tether settled everything with bribes and treated El Salvador as a puppet.

Bugele Harvest Media revealed that Bitfinex gained liquidity, and Tether regained his life.

And those who didn't keep up may not know: El Salvador later quietly gave up on the plan to legalize Bitcoin because the entire experiment failed completely. Chivo wallets have actually gone bankrupt and closed, with usage plummeting 98.9% after launch.

Even Tether and its internal network cannot be saved - because there is no real market demand at all.

Jack Mallers is the core figure in this circle - it is extremely closely related to the operating system of Tether-Bitfinex.

His new company, Twenty One Capital, claims to be underway for large-scale Bitcoin investments. But on-chain data shows that up to 14,000 of these bitcoins (more than $2 billion) come directly from Tether’s reserves.

They claim to have a lot of market demand, but the only record of investing in them is Tether, a company convicted of lying to investors and committing fraud. Too suspicious...

This is not an investment at all, but an internal accounting - another "shell company performance" is part of this huge liquid circus. Strike, another Mallers company, has long had a close relationship with Tether. It relies on Tether for 100% of its payment transactions.

This is not an innovation, but a variant of monopoly.

Michael Saylor is playing the same reflective Ponzi loop game.

I'm sure Saylor is also associated with this internal circle that supports the entire situation. His company MicroStrategy is not "innovating" at all - but one of the most radical and most leveraged stocks in the entire market. What they call "investment in Bitcoin" is actually a flipping bitcoin.

Their routine is very clear:

Financing → Buy Bitcoin → Blow Price → Refinancing → Repeat the cycle.

This is a closed-loop scam that is piled up by "hope" and "hype".

What Saylor advocates is not the concept of "hard currency", but wants to hold on to the game for a longer time - so that he can get the most benefits before the music stops.

Tether and Bitcoin are trapped in a circular endorsement circle - Tether supports Bitcoin, and Bitcoin in turn supports Tether. This structure is a time bomb that can be detonated at any time.

At the Bitcoin 2025 conference, Saifedean Ammous, a Bitcoin extremist and author of "Bitcoin Standards", finally expressed the subtext in everyone's heart:

"Tether is quietly accumulating Bitcoin and continuously expanding its reserves. One day, its Bitcoin reserves will exceed the US dollar reserves. By then, Tether will not only maintain its anchorage, but may even appreciate. Imagine a "stablecoin" worth more than USD 1, behind it is no longer USD debt, but Bitcoin."

It's almost a repeat of the collapse of Mt. Gox and Lehman Brothers: Once liquidity breaks, the poker pile will collapse instantly. There is no real asset support, only a bunch of unstable mutual endorsements.

Be prepared – an epic crash is already on the way.

At Bitcoin 2025 conference, Tether announced that it has held more than 100,000 Bitcoins and 50 tons of gold.

It sounds like something very wrong. Let’s see its operation process:

1. Tether makes something out of nothing, printing millions (or more) USDT out of thin air;

2. Buy Bitcoin with these newly printed Tethers and raise the price;

3. Sell the excess Bitcoin and exchange it for US dollars and gold as a "reserve";

4. Then use these reserves to display them to prove that they are "legal and compliant";

5. At the same time, the group of Bitcoin extremists (flocks of faith) in the audience were still cheering, thinking that everything was real.

Tether’s doubters have actually been right over the years. We pointed out a few years ago that Tether was quietly buying Bitcoin, and they were still denying it. Now, they don't even install it. Tether is the only big buyer in the entire Bitcoin market—everything depends on it constantly printing money and taking over.

This is the ultimate "House of Cards". Once it collapses, no one will be able to save it.

The so-called "institutional Bitcoin demand" is just a gust of storm.

On June 2, Bitcoin spot ETFs experienced a net outflow of US$267.5 million, and this is the third consecutive day that large amount of funds have withdrawn. This is not an accident – ​​this trend has been going on for several months, indicating that institutions are retreating rapidly.

As early as the end of 2021, the inflow of Bitcoin ETFs reached billions of dollars, which was at the peak of market fanaticism. But since then, institutional interest has plummeted by more than 91%. These continued capital outflows now reflect that market confidence is declining, regulation is tightening, volatility is intensifying, and earnings prospects are unclear.

Institutions should be the "pillars" of Bitcoin prices, but now they are running away collectively. The so-called "institutional entry" was just the hype and FOMO sentiment at that time. Smart funds have already left the market quietly.

To make matters worse, even the relatively "pro-crypto" SEC (SEC) is becoming cautious. They allegedly reserved their approval of more Bitcoin spot ETFs from Bitwise, Grayscale and other institutions, on the grounds that the anti-fraud protection mechanism is too weak.

The entire Bitcoin ecosystem is actually a "smoke and mirror" game. This industry is not supported by real demand at all, but is constantly controlled by a group of insiders (such as Tether and Bitfinex) - they repeatedly mobilize coins and liquidity and carefully create the illusion of "adoption trend" and "market hot".

They have built a strong narrative system that has successfully convinced the public that "the government and institutions are entering the market in a big way." But what about reality? This is just an exquisite scam and market support scam.

If you are sober enough to penetrate these noises, you will find out how dangerous it is. The price of Bitcoin is not driven by natural growth or real institutional demand, but is almost entirely driven by Tether’s unlimited printing of money and then buying BTC to maintain the price. More than 90% of Bitcoin buying on the market are behind Tether’s investment. Once the US government (currently Trump's camp is pushing) strictly regulates stablecoins, this "liquidity faucet" will be closed and the Bitcoin market will face a tragic liquidation.

It is not only impossible for Bitcoin to break through $100K in the end, but it may even fall below $10K directly. The so-called "institutional demand" has long disappeared, and internal players have gradually been exposed. This artificial illusion is destined to not last long.

This whole narrative is an artificial fantasy, a house of cards that will collapse instantly when the wind of reality blows.

Please be sure to be vigilant: this is not a "hard currency of the future", but a financial bomb that is counting down.