Reliving The FUD That Led To This Week’s Bitcoin Crash

THELOGICALINDIAN - It is the affliction of times It is the best of times It is the age of abhorrence ambiguity and agnosticism Nevertheless Bitcoins fundamentals abide complete The projects amount is still there admitting the adverse bead in amount It was all activity so able-bodied How did we get actuality Actually there are a lot of accurate affidavit Lets analysis all of the causes that advance to this FUD

As you know, aggregate started through Elon Musk’s fingertips…

Tesla’s “Environmental Concerns”

When Bitcoin was on its way up, Elon’s aggregation gave it the advance it needed. Tesla appear buying of $1.5B account of Bitcoin that, apparently, abide on its antithesis sheet. The crypto association acclaimed the move, profits followed. The coin’s legitimization seemed to booty a footfall forward. And then…

Inexplicably, Tesla appear they were not accepting BTC as a anatomy of acquittal anymore. Despite agrarian speculation, no one knows what happened. In his tweeted announcement, Elon cited “rapidly accretion use of deposit fuels for Bitcoin mining” as the reason. Few bodies central the crypto association believed it. Everyone alfresco of it did. And alike admitting Tesla clarifies they didn’t advertise any of their Bitcoin, the FUD set in. And retail investors started selling.

If you appetite to apprentice about Elon’s absolute angle on the matter and about aggregate the crypto mining industry is accomplishing apropos blooming energy, arch over to Bitcoinist, our sister site.

China’s Tightening Up Its Bitcoin Policies

This generated lots of FUD. The People’s Bank of China seemed to advertise bright and abortive rules apropos cryptocurrencies. Yahoo Finance reports:

“This is the latest affiliate of China abbreviating the asphyxiate about crypto,” said Antoni Trenchev, managing accomplice and co-founder of Nexo in London, a crypto lender.
Virtual currencies should not and cannot be acclimated in the bazaar because they’re not absolute currencies, according to a apprehension acquaint on the PBOC’s official WeChat account. Financial and payments institutions are not accustomed to amount articles or casework with basic currency, the apprehension said.

Nevertheless, as with best things on this list, the advertisement didn’t bulk to annihilation specific yet.

The US OCC Turns Its Eye To Cryptocurrencies

The anew appear Acting Comptroller of the Currency, Michael Hsu, appear that the bureau he presides, the Federal Reserve, and the FDIC are reviewing their behavior on cryptocurrencies. This isn’t necessarily a bad thing, it ability advance to clearer laws and stronger authoritative support. Nevertheless, the FUD doesn’t apperception that fact.

Hsu’s statement to the Committee Of Financial Services reads:

Shortly afterwards I started, I requested a analysis of key authoritative standards and affairs awaiting afore the agency. Those items accommodate the 2024 Community Reinvestment Act (CRA) final aphorism and associated NPR accompanying to achievement benchmarks, interpretative belletrist and advice apropos cryptocurrencies and agenda assets, and awaiting licensing decisions. For each, the analysis is because a abounding ambit of centralized and alien views, the appulse of afflicted circumstances, and a ambit of alternatives.

Binance Under Investigation

The US government angry its eye appear Binance. Apparently, blockchain investigator close Chainalysis begin a pattern. It showed a appreciably college allotment of funds from bent enterprises flowed through Binance, compared to added exchanges. Bitcoin Magazine reports:

The world’s better cryptocurrency exchange, Binance, is beneath analysis by the U.S. Department of Justice and Internal Revenue Service (IRS), according to a address from Bloomberg.
“As allotment of the inquiry, admiral who delving money bed-making and tax offenses accept approved advice from individuals with acumen into Binance’s business.”

Even admitting it’s aloof an analysis and annihilation ability appear of it, the FUD it generated aural the association cannot be ignored.

India about bans cryptocurrencies

A absolute crypto prohibition was on the table already again, but India’s assembly angry the address at the aftermost minute. Word on the artery is that they’ll canyon clearer authoritative laws instead. The Economic Times reports:

The axial government may anatomy a beginning console of experts to abstraction the achievability of acclimation cryptocurrency in India, three sources buried of the discussions told ET. This comes amidst the prevailing appearance that the recommendations by a board headed by above accounts secretary Subhash Garg in 2019 for a absolute ban on these assets had become outdated.

This new rumor accustomed yesterday, but the FUD that a absolute ban inspires was about for a while.

Is This A Coordinated Attack? Or Is The World Just Going Nuts?

We can’t affirm or abjure this was a accommodating advance on Bitcoin and cryptocurrencies in general. Maybe the aerial class, transnational corporations, and aerial rollers of all kinds appetite to buy your BTC at a discount. Market abetment is as old as markets. But, maybe, this absolute storm of bad account is what happens back the best assuming asset that the apple has anytime apparent takes over the world’s headlines. All eyes about-face to it, and all fingers alpha poking.

However…