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Why is this bad for Bitcoin?
History is full of examples on what happens when leaders of an industry collude to corner the market and control the price. Only they will profit and everyone else loses.
Will history repeat itself? Are we too stupid or weak to let them? Have we forgotten the lessons of history?
So what is your proposed response by anybody? One of the long vaunted virtues of Bitcoin is it's "lack of central control" and it's long term goal of being a "currency". The "industry" you mention is unlike any other that I am familiar with.
What would this cartel think to do to manipulate Bitcoin? Presumably you are thinking of Bitcoin as an asset. It doesn't however completely match the model , since it doesn't have any alternative use, like a precious metal might. Since it only exists as ones and zeros, and it's value exists only to the extent that folks
believe it does, it's hard to see exactly what folks would would try and do to their advantage.
I will also add that in the grand scheme of economics, Bitcoin is a fairly small blip. BTC could could go to zero tomorrow, and that would be about the same impact as the one bad JP Morgan trade last year for 6
Billion dollars. 99% of the population has essentially zero interest in BTC, and wouldn't care if it went "poof" overnight.
I just can't get excited about a "BTC Cartel".