Crypto - How bad is this really?
Crypto markets are tanking, but how bad is it really?
The crypto markets are in free-fall.
Bitcoin is sitting near $4k.
Steem is sitting in the $.30's.
How bad is all this really?
Honestly, things are likely pretty bad.
If you are not following along what is causing most of the selling, there are 3 major issues all playing out fueling this massive flight to safety.
(1). Craig Wright and his drama:
CW has been spouting off about how he is going to work to kill off every coin that isn't bitcoin because they are all scams (his words. In order to do this he is going to get the SEC to see that just about every single one are unregistered securities.
Which leads me to point number 2...
(2). Major regulatory issues:
The SEC ruled on Friday that two large ICOs had to refund investors the dollar amount they had invested. That is a big deal because the ICOs raised their funds in bitcoin and ether and higher prices.
In order to get the dollar amount requested by the SEC, they are having to sell everything they are holding and it likely still won't be enough.
There are many many projects out there that this SEC ruling may also apply to, which means there likely could be a ton of selling from those projects as they try to comply with that the SEC is demanding.
(3). Finally, risky assets across the board are in free fall:
The US stock markets are now down close to 15% from their all time highs. They have been seeing close to record single day drops as investors are getting battered across the board.
Anyone leveraged is likely getting squeezed out, which is likely spilling over into crypto markets.
Conclusions:
My hope is that the SEC is not going to come down as heavy handed as it sounds like they are about to.
If they do, there is likely much more pain ahead.
Possibly to the point where much of the crypto industry shutters, including many of the current altcoins.
Bitcoin will survive, but who knows what price it will be at when the dust settles.
At this point, unfortunately it all depends on how heavy handed the SEC decides to come down on the ICO projects.
I wish I had better thoughts about things currently, but I do not.
Stay informed my friends.
Image Source:
https://www.reddit.com/r/CryptoCurrency/comments/9yr1b9/you_okay_bitcoin/
Follow me: @jrcornel
And then there's Tether, the USDT exchanges are tradings at a 6% premium and Bloomberg reports today that the criminal probe on crypto market manipulation is focusing on BitFinex and Tether.
Nice of you to join us on the bearish side. We have cookies and honey, but we're hoarding it to survive the winter..
I was always of the opinion the SEC was going to focus on the ICO scams. Not the legimate projects that may have not done things correctly at launch. However, the second they went back in time and forced the legitimate players to pay back the money accepted (in fiat dollars), it changes everything. Tons of ICO projects likely have to dump bitcoin and ether to satisfy this.
I honestly would be surprised if action is taken against tether or bitfinex. A conflict of interest fine maybe, but if there was something as big as you and others think, the CFTC would have found it when they launched their investigation almost a year ago at this point.
There must be a bottom/support level coming up; what is is is the real question 🧐
$2k? $1k? If things are as bad as some thing, those numbers may be in play. I would be shocked to ever see sub $1k again though.
Probably the minimum for BTC is around 3500.
Steem 0,2 .... but yet again who knows :)
I would not be shocked to see it back at $2k personally. Worst case, maybe even $1k. The entire bull phase from $1k to $20k is being undone.
Seams unbelieavble at the moment :)
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Bitcoin’s price might be rising but it’s way too early to call this a true resurgence.
and also bitcoin has appeared to be more immune to negative press in 2018, which has previously had a major impact on its market movements.
Lets see what happens.
Thanks for the post though @jrcornel
Honestly, there hasn't been a big enough bounce yet for me to say the bottom is in. We likely go lower still.
BTC at 1000 ,Steem below 20 cents
If BTC goes to $1k, steem may be sub $.10.
Lol cryptos used to be the movement of financially independent users and people who want to get rid of government over regulations and third party risk. And now most cryptos are seeking regulatory compliment with the SEC which is totally the opposite for what we came here.
I don't understand how the SEC can create so much pressure on the decentralized networks.
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Anyone thinking these were gonna free people from governments and regulators was sadly mistaken. These were always going to be killed or regulated.
It's all a big shakedown
Not as bad as it looks. It's largely seasonality and whale manipulation.
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Seasonality? November is the best month of the year for crypto historically. It might be a lot of things, but seasonality is definitely not part it.
I thought the best month was January, because that's when the high was last year... I still remember when ETH was selling at 0.3 BTC just because BTC network was unusable due to too many pending transactions. It was like getting 60 EUR with 0.30 EUR initial investment if you were lucky like me.
Going back to 2013, the best month of the year for bitcoin and crypto has been November, followed closely by October. January comes in 3rd though. Basically, October through January are traditionally very good months for crypto. Though we do only have 5 years of data to go off of and only one bear market...
Also creates opportunities for those that are not under the scrutiny of the SEC. It will also provide which projects are great in the long term. Less projects to invest in will ultimately lead to better valuations and prices.
Hopefully. It will give coins that are launched overseas an advantage over any that launch here.
who the hell is craig wright?
how could they shutter a whole industry?
Look him up. Claims to be Satoshi, but he is most likely not. Though he may have been part of the Satoshi team that created bitcoin. He knows things only people there at the very beginning could know.
They mostly shutter a whole industry in a couple ways. First they will go after every single ICO that did not exactly follow regulations when they launched. They force them to pay back every dollar raised and register with the SEC. If they do not, the coins are delisted from exchanges. That removes like 75% of the coins on coinmarketcap. Also they go through the exchanges and any exchange that traded unregistered securities they shut them down for violating securities laws. That would shut down just about every major crypto exchange that trades altcoins. Those two actions alone would wipe out most of the crypto industry as we know it currently.
So, did STEEM follow regulations? Or how was it launched? ty
I do not know exactly to be honest. I know there was never an ICO, which was good. Though there are still some questions about how things were handled when steem first launched. Most likely steem will be fine, but if the entire market tanks, the price of steem will come way down with it.
Sounds we're sitting decent... i think it's all a scare / witch hunt, but who knows depending if the powers that be want to white wash crypto and make it THEIR 'decentral' but really completely centralized scam ... u.s. dollar 2.0 , etc