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/
