Wow, what a great buying opportunity! The annual January crash!
There's lots of people cryhing today...they bought in at all time highs and see nothing but deep red.
Panic selling! Cries for regulation! Fear, anxiety, desperation, worry, concern!
Boo hoo.
Bitconnect just went belly up. China is doing their January money-is-bad holiday thing. A couple banks and credit cards stopped flow of fiat into the crypto market. People are taking profits from the all time highs.
Tens of billions have been sprinting out of the market.
Is this bad news? Hell no. This is a buying opportunity. A deeply discounted buying opportunity. Sure you bought XRP at $3.30 (you f'ing dummy). Buy some more now at $.96 (if you didn't catch it at $.83 or $.85.).
Want some Bitcoin at $9,777? Get it right now. It's probably going to $9k, maybe $8.5k.
ARE WE AT THE BOTTOM?
Maybe. Maybe things will rocket up from here. Maybe.
Maybe it will still go a little lower.
It's a great time to buy. End Of Story.
CAN IT GO LOWER??
Yes it can, just because. A little or a lot.
But there's three events that could easily make it crash from here. You think this is a crash and it can't go much lower? THink again.
3 EVENTS THAT CAN CRASH THE MARKET FROM THIS SUPER LOW LEVEL
Want to see another 100 billion vanish from the market cap?
It could easily happen.
Event #1
Capital One Card shut off crypto purchases last week.
Metropolitan Bank, the 'bitcoin bank' just stopped wire transfers into crypto entities.
Take a look at the news from January. There's lots of signal that banks are concerned about crypto, they they're not working with crypto entities (like Coin Spot).
If there is a coordinated effort by banks, credit cards (run/owned by banks), and of course the media to send a "Banks And Credit Cards No Longer Work With Cryptocurrency Businesses" message, what do you think the market will do?
Investors big and small will be anywhere from concerned to panicked and the market will go from a tumble to a CRASH.
Little guys will panic sell. Big investors will know they will, so will sell to get out ahead of them. Other investors will know that's all happening, and will get out.
You think we're at 'crash' levels right now? We're not.
The emotional traders will scream "SEE! Banks are afraid of crypto!" "They're trying to kill crypto!"
Meanwhile, the banks will likely be buying crypto on the cheap, then reverse their policies, turn the flow of fiat to crypto back on, and be billions of dollars richer.
Save some funds to buy cheap if that happens.
$4,000 Bitcoin? Totally possible in this scenario.
EVENT #2
The Tether/USDT Fraud finally hits the fan.
There's a lot of probably true rumors/noise that one or more exchanges were just making up tether to buy crypto, and that is a large part of the astronomical rise of the entire crypto market (certainly the fast rise of Bitcoin to $20k).
What if it comes to light that 10 billion, 50 billion, 100 billion of the current crypto market marketcap is based purely on the fraud of magically created tether?
Even newbies would quickly realize that the market value is total bullshit, and the market would SELL. Whatever trust in the market there currently is would vanish in a cloud of fear and anger and uncertainty.
Eventually the 'true' market valuation would settle out to where it should be (WAY LOWER than it currently is) as the market determines the new correct value.
As far as buying opportunity, it's at the bottom of that huge drop fueled by fear, panic selling, whales selling to take profit and to push the price down even more-artificially to buy the super lows.
$1,000 or less bitcoin? Totally possible in this scenario.
EVENT #3
Government bans crypto trading, and/or crypto exchanges. And/or Gov't bans banks and credit cards from any flow of fiat to crypto (and possibly crypto to fiat).
An outright ban is the least likely scenario because:
A. There's lots of new technology being innovated in the field,and gov't likes that.
B. Gov't can tax the shit out of crypto profits, and gov't likes that.
But gov't CAN and COULD put an outright ban on all crypto.
That's $1 Bitcoin as then the only people trading it are on the dark web, most exchanges shut down and those remaining would see crypto values plummet to KB3 levels (half a satoshi last I looked).
What's more likely is heaping tons of regulation on banks/credit cards/exchanges/citizens.
As that regulation is getting written and implemented, as the gov't hires companies to design software that tracks and links IP addresses to blockchain transactions, etc, we could easily see one or more of the following:
A. An outright ban "IT's only temporary until we get this regulation out to keep you alls afe from terrorists and drug dealers."
B. Partial bans
C. Random regulations greatly limiting the ability of investors/banks to send/receive crypto/fiat.
D. Random regulations like "All crypto traders must register as crypto traders and give up all trading info to the gov"
E. Random regulations like "All exchanges must implement super trade tracking/reporting functionality and link it to KYCx10 requirements."
F. Random law like "Anybody caught trading crypto without registration (see D above) will serve a mandatory 5 years of prison time"
Anything B-F above if it came out today/this week could/would create fear/uncertainty/panic and money would flee the market dropping prices WAY down.
The point of this all is, save some funds/resources in case the market tanks FAR lower from where it is now.
It will be a great buy opportunity, and you'll be feeling dumb if you went all in at these levels and have nothing to buy with if it drops 40%-80%+ from here.