Are we really surprised? Apparently a bunch of South Korean government officials sold off their holdings right before extreme cryptocurrency regulations were suggested and crashed the price of Bitcoin.
And this is where the values of cryptocurrency investors are tested. Most people who invest in cryptocurrency like the fact that there are no regulations and it's the very definition of a free market.
But, we need to talk about these increasingly common instances where these morons usually within the confines of their own corrupt traditional banking walls are manipulating the market using their inflential platforms.
Remember when Jamie Dimon from JP Morgan came out and trashed Bitcoin in September 2017 calling it a fraud, the price dropped and then it was revealed shortly after that JP Morgan were buying Bitcoin?
Now Jamie has come out recently and said he regrets calling Bitcoin a fraud. Perhaps it might have something to do with a complaint being lodged with the Swedish financial regulator about his actions.
Governments, financial institutions are scared
It's clear why this is happening, governments are scared of cryptocurrencies.
The wise Ghandi once famously said:
"First they ignore you, then they laugh at you, then they fight you, then you win."
Bitcoin and cryptocurrencies as a whole are being fought right now. The threat of regulations, exchange closures, archaic rules and restrictions. Governments and financial institutions are scared.
Ironically, it is these very manipulative events that will be used as justification from the likes of the SEC, Federal Reserve, JP Morgan and others to fight for tougher regulations.
Make no mistake, every time something like this South Korean situation occurs, it is being written down somewhere to be used as evidence of Bitcoin being dangerous and the need to control it in a tougher manner.
You know how taxi companies fought their hardest to stop Uber? For a while taxi lobbyists were successful in slowing down Uber, getting it banned in various locations all over the world.
Now look what is happening, Uber has successfully entered many markets, including the very taxi dominated industry in Australia. There are so many parallels between Uber and cryptocurrencies like Bitcoin. When you enter an old and established industry that has resisted change for so long, you're going to have a battle on your hands.
While Uber is still fighting, it has had so many wins that they longer need to fight as hard.
Get smarter, fight back
As investors we need to get smarter about how we buy and sell cryptocurrency. If this South Korean situation as well as the Jamie Dimon fraud comments in 2017 have taught us anything, it's you should be buying when governments and CEO's of financial institutes are publicly calling it out.
Every time you panic sell, you're making the problem worse. In dire times when the JP Morgans and governments of the world are trying their hardest to stop you or slow you down, fight back and hold.
When everyone is panic selling, you should be buying.