Part 13/17:
Lynn warns of the dangers of over-leverage in crypto markets similar to traditional finance, as liquidations can cascade and exacerbate downturns. Nevertheless, the general trend remains positive, especially with inflationary pressures potentially supporting prices.
Market Manipulation, Paper Gold, and Bitcoin Dynamics
Addressing concerns about market manipulation, Lynn acknowledges that paper gold’s large paper market can distort perceived value, especially during volatile periods. Physical gold provides a more stable benchmark, but the dominance of derivative contracts means prices can be temporarily disconnected from actual metal holdings.