But my question is still valid though. Why someone would risk his capital at loss "betting" on an approval from the SEC? We are talking about thousands of million dollars. I took $20,000 as an example because it was its ATH. But I could very well have considered $15, 000 or even $10,000. The market could very easily have been stabilized at these levels. (we are still considering someone with the resources to manipulate the market). After all, Bitcoin did not go from $1k (Early 2017) to $20k (End 2017)
What market makers look for is consensus, but then in terms of what the general market believes to be a support level. We didn't have that at any level above $7000 while market makers may have been trying to settle a floor somewhere, but there are too many sellers. Don't forget that the higher the price is, the less support your liquidity is able to provide.
$10 million in liquidity may seem like it is a lot, but it's peanuts. Around $15,000 your $10 million only stops ~670BTC, which whales obviously have no problems dumping through. As per this example you can imagine how difficult it is to artificially stabilize the price without the consensus of the market. On top of that, spot exchanges have very poor liquidity because of the lack of trust.
Who's going to wire hundreds of millions to an exchange? Deep pockets go straight to the source (miners) for large orders, or have an exchange as ItBit function as deal maker.
