Why Money Goes Up: The Triforce That Has Transformed BTC Into a Bubble

A small group of financial insiders can create money out of thin air, use it to manipulate markets worth trillions, and have the U.S. government protect them while they do it. Fun fact, is not the FED

May 03, 2025

Imagine a world where a small group of financial insiders could create money out of thin air, use it to manipulate markets worth trillions, and have the U.S. government protect them while they do it. Welcome to 2025, where the unholy trinity of MicroStrategy, Tether, and Cantor Fitzgerald has pulled off what might be the most audacious financial engineering scheme since Charles Ponzi was selling postal coupons and promising 50% returns in 45 days.

The MicroStrategy Pyramid: Just the Tip of the Iceberg

In my previous exploration of MicroStrategy's financial engineering, I detailed how Michael Saylor transformed a failing software company into a leveraged Bitcoin bet that makes Bernie Madoff look like an amateur.

👉 More: Inside Microstrategy's Bitcoin Pyramid 👈

But what if I told you MicroStrategy's $27 billion debt-fueled Bitcoin buying spree was just one piece of a much larger puzzle?

The puzzle pieces start fitting together when you connect MicroStrategy to Tether (the unaudited "stablecoin" that prints digital dollars) and Cantor Fitzgerald (the Wall Street powerhouse that now has a direct line to the White House through Commerce Secretary Howard Lutnick). What emerges isn't just a company making a risky bet—it's a coordinated system designed to manipulate markets, evade regulation, and funnel billions to insiders.

It's like discovering that not only is your local casino rigged, but the dice manufacturer, the security company, and the gaming commission are all owned by the same family. And that family just moved into the governor's mansion.

Follow the Money: Cantor's MicroStrategy Obsession

Let's start with a bombshell that tells you everything you need to know about this incestuous relationship: Cantor Fitzgerald's portfolio is over 30% concentrated in MicroStrategy stocks, call options, and put options as of December 31st, 2024. This isn't just a minor position—it's an all-in bet on Saylor's Bitcoin pyramid that would make even the most degenerate Wall Street gambler clutch their pearls in shock.

Why would they take such an extraordinary risk? Because it's not a risk when you're part of the system that controls the game.

Before you dismiss this as conspiracy theorizing, let's look at the hard evidence from academic researchers. In 2018, finance professor John Griffin and graduate student Amin Shams from the University of Texas published a groundbreaking analysis examining whether Tether influenced Bitcoin prices during the 2017 boom.

Their research, later published in the prestigious peer-reviewed Journal of Finance, discovered that Tether issuances were "timed following market downturns and result in sizable increases in Bitcoin prices." This pattern couldn't be explained by organic investor demand.

When Griffin and Shams updated their study in 2019, Bloomberg reported an even more striking claim: "a single market whale was likely behind the misconduct, seemingly with the power to move prices at will."

This isn't some crypto bro on Reddit claiming "price manipulation!" This is peer-reviewed research showing that a single entity could effectively control Bitcoin's price through strategic Tether issuance.

Griffin explained the mechanics of this manipulation to Fortune: "The issuing of Tether without backing inflated the amount of currency chasing the same supply of Bitcoin." This process created artificial demand that drove prices higher—like injecting helium into a balloon and then acting surprised when it floats.

The Weekend Money Printing Machine: How It Actually Works

Let me walk you through the precise mechanics of this operation—the real nuts and bolts of how money gets created out of thin air and transforms into billions in profits for a select few insiders.

Phase 1: The Tether Weekend Special

Every weekend, when traditional markets are closed and regulatory eyes are taking a much-needed Netflix break, Tether fires up its digital money printer and mints millions—sometimes billions—of USDT tokens. These tokens are supposedly backed 1:1 by U.S. dollars, but multiple investigations tell a very different story.

The New York Attorney General didn't mince words after her investigation: Tether's claim of full dollar backing "was a lie." The Commodity Futures Trading Commission found Tether maintained sufficient reserves only 27.6% of the time during their investigation period.

Why weekends? Because Tether has achieved something no other entity on the planet has managed: the supposed ability to receive billions in bank wire transfers when banks are closed.

In November 2024 alone, Tether minted $5 billion USDT over just five days, contributing to Bitcoin's climb to record highs. This wasn't a one-off event—it's a repeating pattern.

Here’s how suspicious this situation should be: During a 26-month period, the CFTC’s investigation revealed that Tether maintained sufficient reserves to back its tokens only 27.6% of the time. This means that nearly three-quarters of the time, Tether was effectively printing digital dollars without proper backing, as per U.S. regulators who fined them $41 million for this very practice. Although we don’t have an audit about their reserves, we do have “wonder who?” Howard Lutnick, who claims to have the money but still no audit.

Phase 2: MicroStrategy's Leverage Bonanza

Enter Michael Saylor and MicroStrategy, playing the role of "institutional validation" in this scheme.

As the freshly minted Tether flows into Bitcoin and pushes prices higher, MicroStrategy announces yet another debt offering to buy more Bitcoin. Since August 2020, MicroStrategy has acquired 538,000 BTC worth $50.7 billion, largely through debt offerings.

The genius of MicroStrategy's approach is its use of leverage. When Bitcoin's price rises (conveniently after Tether's weekend minting sprees), MicroStrategy can secure more debt on better terms, using their existing Bitcoin as collateral or the company's increasing market cap as justification.

It's a self-reinforcing cycle:

Tether mints USDT
Bitcoin price rises
MicroStrategy borrows more to buy more Bitcoin
This additional buying pushes prices even higher
MicroStrategy's stock price soars
Repeat

MicroStrategy’s stock trades at a 75% premium above the actual value of its Bitcoin holdings, and this is a significant factor. The market isn’t just valuing the Bitcoin; it’s also valuing the pyramid scheme itself.

Phase 3: Cantor Fitzgerald's Double-Dipping

Now here's where the traditional financial system gets compromised. Cantor Fitzgerald plays multiple crucial roles:

Tether's Treasury Custodian: Cantor holds and manages most of Tether's alleged $134 billion in assets, but no audit.
Strategic Tether Investor: Cantor owns approximately 5% of Tether, valued at around $600 million.
MicroStrategy's Biggest Fan: Cantor has placed an astonishing 30% of its investment portfolio in MicroStrategy stocks, call options, and put options as of December 2024. This means Cantor profits enormously from the Bitcoin price manipulation that Tether facilitates.
Bitcoin-Backed Lending Pioneer: Cantor is developing a $2 billion Bitcoin-backed lending program in partnership with—you guessed it—Tether.

This is financial incest at an unprecedented scale. Cantor effectively profits from every angle: fees from Tether, equity appreciation in Tether, stock gains from MicroStrategy, and now lending against the very asset being manipulated.

It's a perfect symbiotic relationship. Tether prints money, Bitcoin price rises, MicroStrategy's stock soars, and Cantor collects fees while watching its MicroStrategy position multiply in value. Everyone wins—except, of course, for the eventual bag-holders when the music stops. But hey, that's a problem for future investors!

Phase 4: The 21 Capital Clone

In April 2025, this scheme expanded with the launch of Twenty One Capital—a direct MicroStrategy clone being spearheaded by Brandon Lutnick, yes the son of Howard Lutnick.

Brandon Lutnick is building a $3 billion Bitcoin venture" that will receive "$1.5 billion in Bitcoin from Tether, $900 million from SoftBank, and $600 million from Bitfinex (basically, Tether again)."

The conflicts extend to family connections too. Lutnick's son Brandon not only works at Cantor but previously interned at Tether in Switzerland, where he reportedly counted gold bars stored in a mountain vault.

The explicit goal is to replicate the success of MicroStrategy. This is yet another excuse to launder Tether BTCs and increase buying pressure in BTC to perpetuate the scheme.

Phase 5: Political Protection Through Lutnick

The final piece that makes this entire operation possible is political protection. Howard Lutnick, former CEO of Cantor Fitzgerald, is now Commerce Secretary under President Trump. This creates an extraordinary conflict of interest.

The Washington Post reported that Treasury officials had spent months weighing sanctions against Tether for allegedly facilitating illicit financial activities. With Lutnick now in a cabinet position, what are the odds those sanctions will ever materialize?

Why This Matters: Beyond Crypto

"But it's just crypto," you might say. "Who cares if some Bitcoin speculators lose money? Isn't that just digital Beanie Babies for tech bros?"

The problem is that the contagion risks extend far beyond cryptocurrency markets. With Cantor Fitzgerald deeply involved in both traditional finance and this crypto scheme, the walls between these systems have never been thinner.

Tether effectively functions as an unregulated, unaudited shadow bank with a $143 billion money supply. But unlike regulated banks, there's no Federal Reserve backstop, no deposit insurance, and no meaningful oversight. Just the "full faith and credit" of a company that regulatory investigations have repeatedly found to be less than truthful.

Remember 2008? That crisis began with seemingly contained problems in the subprime mortgage market before cascading through the entire financial system. This situation with Tether, MicroStrategy, and Cantor creates similar systemic risks—but potentially at an even larger scale.

And here’s a fun fact: Trump invested in Trump Mortgage in 2007. The company brokered residential and commercial mortgages, led by E.J. Ridings, introduced by his son, Donald Trump Jr. Interestingly, this investment was made just before the financial crisis that began in 2008. Now, Trump is starting a crypto business, which was also introduced by his son. Perfect timing again? But that’s a story for another time..

The GENIUS Act: A Legislative Cherry on Top

Now let's examine how the "GENIUS Act of 2025" aka the Trump version of the Stablecoin bill, effectively provides legislative protection for this entire scheme at the cost of U.S. monetary sovereignty.

The Facade of Regulation

The bill presents itself as serious regulation. It requires stablecoin issuers to:

Maintain 1:1 reserves in specific assets like cash and short-term Treasuries (Section 4(a)(1))
Have monthly reserve examinations by accounting firms (Section 4(a)(3))
Publish the monthly composition of reserves (Section 4(a)(1)(D))
Have CEOs and CFOs certify the accuracy under criminal penalty (Section 4(a)(3)(B))

This all sounds great—until you get to Section 15, the "Reciprocity for Stablecoins Issued in Overseas Jurisdictions" clause:

"The Federal Reserve, in collaboration with the Secretary of the Treasury, shall create and implement reciprocal arrangements or other bilateral agreements between the United States and jurisdictions with substantially similar payment stablecoin regulatory regimes to facilitate international transactions and interoperability with United States dollar-denominated stablecoins issued overseas."

This provision creates a massive loophole specifically tailored for Tether:

Offshore Haven Protection: Tether operates from offshore jurisdictions, beyond the direct reach of U.S. regulators. The "reciprocal arrangements" would allow it to continue operating.
"Substantially Similar" Is Undefined: The bill doesn't define what constitutes a "substantially similar" regulatory regime, leaving that determination to the administration—the same administration in which Lutnick serves.
No Explicit Audit Requirements for Foreign Issuers: While U.S. stablecoin issuers would face stringent requirements, foreign issuers deemed to operate under "substantially similar" regimes would be exempt from direct U.S. oversight.

The Threat to U.S. Monetary Sovereignty

This creates an existential threat to U.S. monetary sovereignty for several reasons:

Foreign Dollar Printing: Entities like Tether can effectively create unlimited dollar equivalents without meaningful U.S. oversight. This is akin to allowing a foreign entity to print U.S. currency.
Evading Reserve Requirements: While U.S. issuers must maintain strict 1:1 reserves in specified assets, Tether—which the CFTC found maintained proper reserves only 27.6% of the time in the past, and now we only have BDO Italy attestations, and a “Trust me bro” from Cantor—could continue operating under more lax foreign rules.
Monetary Policy Impact: With Tether's $143 billion market cap (and growing), it effectively functions as a shadow Federal Reserve, expanding and contracting dollar liquidity globally without coordination with actual U.S. monetary policy.
Foreign Nation Incentives: Section 15 creates incentives for foreign nations to establish superficially "similar" regulatory regimes specifically designed to enable their companies to print dollar equivalents. China, Russia, or any other country could establish stablecoin issuers in friendly jurisdictions and effectively print digital dollars.
Inflation: If foreign entities in foreign countries can print dollars without being in the US, the US will lack the legal framework to effectively prevent private foreign entities and even competitive countries from printing dollars. This would render it impossible for the Federal Reserve to manage the sovereignty of the US dollar. Consequently, the US would become the first country in the world to privatize monetary policy, entrusting it to entities that have greater incentives to undermine the dollar’s credibility than to uphold it.

Section 15 creates the backdoor for Tether to evade the very requirements the bill establishes. The result? Tether gets legal protection to continue operating while effectively printing U.S. dollar equivalents—a direct threat to U.S. monetary sovereignty.

When (Not If) the Music Stops

Every pyramid scheme eventually collapses, and this one will be no exception. The critical question is: who will be left holding worthless assets when it does?

It won't be Michael Saylor, who has already cashed out over $600 million in personal stock sales while urging followers to "HODL forever." Practicing what you preach is so passé.

It won't be Tether's executives, who operate from jurisdictions with limited regulatory reach and have likely diversified their personal wealth into hard-to-trace assets.

And it certainly won't be Cantor Fitzgerald's leadership, who have diversified their influence all the way to the White House.

No, the losers will be retail investors who bought into the hype, pension funds that chased yields in crypto markets, and potentially taxpayers if the contagion spreads to regulated financial institutions. It's the financial equivalent of a game of musical chairs where the insiders already have guaranteed seats, with cushions.

Connecting the Final Dots

If you've been following the cryptocurrency markets and wondering why Bitcoin's price seems disconnected from economic fundamentals—why it surges on weekends, why it keeps rising despite minimal real-world adoption—this is your answer.

What looks like a series of coincidences—Tether's weekend "prints," MicroStrategy's debt-fueled Bitcoin buying, Cantor's massive MicroStrategy position, Lutnick's cabinet appointment, the GENIUS Act's convenient loopholes—is actually a carefully orchestrated system.

It's not a conspiracy theory; it's a business model. And right now, business is booming.

So next time someone tells you to "have fun staying poor" because you're skeptical of BTC, remind them that the real winners in this game aren't the true believers—they're the insiders who designed the system to enrich themselves while leaving retail investors holding digital tulips.

As they say in crypto, “Few understand.” However, now, perhaps you do. Also, remember that the technology behind crypto and its potential future use cases is legitimate. The gray area of regulations and government insiders created this mess. Don’t blame crypto for this; blame the people!

Tether is also associated with names like Justin Sun, CZ, FTX, and the Trump family, along with its major donors. However, that’s a story for another time. We’re gradually uncovering the scheme, and trust me, there’s a lot to discover! Follow Based Opinion for more.

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