Analyzing the state of FUD (fear, uncertainty, doubt) in the crypto world with the help of HK based financial experts.
In light of the recent crypto rebound we sat down with Jack 'The Ripper' Tan (Master of Applied Economics UCLA) to discuss the current status and foreseeable future of the dreaded crypto FUD.
The recent waves of FUD were primarily caused by news of Chinese ICO bans, exchange bans as well as negative opinions from the CEO of JP Morgan Chase. Lets break this down in two parts.
Firstly, Chinese authorities and their ever increasing regulations will no longer have significant influence on the global crypto marketplace. This lack of influence can already be seen as more negative news from China has been released. An article from cointelegraph.com entitled "China Will Heavily Crack Down on All Bitcoin Trades" implies that access to foreign crypto currency exchanges may be restricted soon. This news would've had a devastating effect on crypto prices a few weeks ago, but today the markets show no discernible effects whatsoever.
There is only so much China-based soft money in the crypto marketplace and analysts believe that majority of those funds have already exited the market or relocated to friendlier environments. It has been reported that the vast majority of Chinese crypto funds have already migrated to Japanese exchanges where they will be safe from draconian Chinese government regulations. Japanese authorities' attitude towards crypto currencies has been overwhelmingly positive and the rate of adoption is second only to South Korea.
The final confirmation of China's lack of influence on crypto will be seen following the 19th National Congress in Beijing on October 18th 2017. If confirmed, this is unlikely to remain a permanent state of affairs. China will not be left out of the crypto world and allow gigantic profits to pass them by - especially with their regional rivals, Japan and South Korea eagerly embracing the technology.
We have discussed the future of China relative to crypto currencies in an article from last week entitled "The truth about Chinese FUD [China Vs Crypto]" which you can access via the following link:
https://steemit.com/crypto/@yugo/the-truth-about-chinese-fud-china-vs-crypto
In the second part of our analysis, Jamie Dimon, JP Morgan and the FUD they cooked up two weeks ago played out a lot like a mob hit. Dimon sets us up - the giant banks knock us down.
We cant help but marvel at the beauty and simplicity of the move. With a few lines from an interview JP Morgan managed to crash the price of BTC and buy the dip only a few days later. This has been widely reported in crypto circles as one user was lucky enough to screenshot the purchase.
Not many institutions have the capital to pull off a move like this. In fact, some analysts do not believe Dimon's comments had a significant effect on prices, rather that the main source of FUD was the previously discussed China news.
We're not in the business of making price predictions as much as making trend predictions. Right now the trends are looking bullish, for the time being.