Crypto Purge
The past 2 weeks has seen news targeting the crypto economy. Regulators across the USA target ICOs by defining some ICOs as securities. China attempts to ban crypto mining, and South Korea wants to ban crypto currencies in totality. Warren Buffet also came out to tell the public that Bitcoin and crypto currencies would end in pain. Coincidence? Possibly, or maybe genuine concern by regulators and governments.
It is no wonder why Bitcoin has dropped from its peak of USD20K to its current USD9K. The last 24 hrs have seen double-digit percentage drops across all crypto currencies driven by weakening trade volumes from Japan and South Korea. Only 2 mths ago, we saw Bitcoin rise from USD3K, and the shenanigans of folks like James Dimon (JP Morgan CEO) who would criticise Bitcoin whilst at the same time buying IN via its European subsidiaries. Double play, and its probably the same again. I can imagine Warren Buffet buying IN whilst this is all happening.
This time hedge funds, and futures markets have significant inventories in crypto (purchased in Nov17) and this is really the danger that the crypto markets will face. Manipulation and financial "wizardry" from Wall St. now comes to wreck havoc on the crypto economy. Don't forget that Japan has legalised Bitcoin.
This shaking will rattle retail investors. There is probably going to be a regular reversal and counter-reversals with governments swinging back and forth driven by geo-politics. This creates market activity. One thing is for certain. Buy low, Sell high.
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