The markets are again a sea of blood red today, following yesterday’s plunge; this is a 2-day streak of losses for many crypto investors.
The three largest cryptocurrency assets – Bitcoin, Ethereum, and Ripple – have lost close to 50% of their overall speculated value from their all-time highs as Bitcoin begins a slight recovery currently trading at [FIAT: $9,969.61] at the beginning of this report, according to Coin Market Cap.
Although, looking at the charts available on CMC, Bitcoin seems like it will plunge further down to at least 8K before this bloodbath is over.
In part, this is due to FUD (fear uncertainty and doubt) being spread by the mainstream media and even some cryptocurrency media sites, who have consistently gotten the “news” wrong, and partially due to real talks of cryptocurrency regulations. Here’s a wrap-up of all the news combined that is causing this bloodbath.
A member of the board of Germany’s Bundesbank, Joachim Wuermeling, has suggested that any attempt to regulate cryptocurrencies would require international cooperation. Speaking at an event in Frankfurt on Jan. 15th, the director told listeners:
“Effective regulation of virtual currencies would therefore only be achievable through the greatest possible international cooperation, because the regulatory power of nation states is obviously limited.”
After the Chinese government banned cryptocurrency exchanges from operating domestically in September, many Chinese crypto traders simply moved their activities to exchanges in Japan, South Korea and to peer to peer trading. Which is much riskier and poses a threat to investors getting scammed.
South Korea’s Justice Minister recently proposed a trading ban and the government has put other controls into place in the face of what some see as a “cryptocurrency mania” in the country. This caused Reuters and other MSM outlets to falsely state that South Korea planned to ban cryptocurrency trading.
South Korea then erupted into a riot, petitions were filed and this resulted in the government issuing a clear decree that they weren’t banning cryptocurrency trading. Even if South Korea were to ban cryptocurrency trading, it would take years, as a Wired article pointed out that is ignored completely by MSM.
Yesterday, an article going around seemed to claim that one individual or group manipulated Bitcoin’s price from $100 to $1,000. While China announced it was going after 3,000+ scam ICO blockchain projects. Subsequently, BitConnect a popular online lending platform that was suspected to be a scam announced it was finally closing its doors for its investment program, citing negative news and legalities after releasing all capital in BCC tokens causing the token to plunge from [FIAT: $330 to $10] within minutes, exiting with one of the largest Ponzi schemes in history, leaving all of their users panic selling a worthless coin that only uninformed users were purchasing.
There is also the constant hammering sound of several countries calling to regulate cryptocurrency trading.
There is probably way more that I missed but, in short, its been negative rumor after negative rumor followed by negative news in the crypto space for the past few weeks, which may explain the potential panic selling going on currently. There is only so much negative news that the markets can endure before the proverbial “dam breaks.” And that seems to be what we are witnessing.
However, despite all the negative news in the cryptosphere, there are positive happenings as well being largely ignored and overshadowed by the negative news.
Meanwhile, Russia has suggested some measure of legality for trading on ‘official exchanges’.
Japan’s biggest bank and the fourth largest bank in the world Mitsubishi UFJ Financial Group, Inc. (NYSE:MTU), plans to open up its own exchange.
Another huge factor that is likely affecting the markets is institutional money involved in BTC futures contracts, which allow for those investors to short BTC while the MSM is pushing FUD. The first Cboe futures contract expires today at 4 p.m. EST with CME contract following closely behind it expiring on Jan. 26, CNBC reported.
Finally, it is worth noting that for the past few years, BTC has followed the exact same trend pattern in January. Last year the low was on January 12th, in 2016 the low was on January 16th and 2015 the low was on January 15th. A chart below shows the same chart pattern a huge dip then gradual rise.
This happens every year around the same time the difference this year is that MSM following directives stared creating a shit ton of fake news leading up to it. when the normal downturn happened the flash crash was 10x worse… follow the pattern.. pic.twitter.com/ZtpPC1CTip
— AKilluminati (AK)???? (@An0nKn0wledge) January 17, 2018
What will later this year hold? We will all just have to hodl and see… 80% of Bitcoin has been mined that leaves just 20% left.
UPDATE: Bloodbath over, markets are back in the green and surging again.
Bitcoin is currently trading at [FIAT: $10,110.60] according to Coin Market Cap at the time of this report.
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