It's been a really brutal showing by the market the past few days. Every dip looks like a precursor for another dip and so forth.
Yesterday, I talked about the state of the market and at the time, Bitcoin was trading around 22k but right now, it's already at 20k. It is also on a downward spiral to 19k with punters once again suggesting that we should all be braced for the worst case scenario.
Now, the worst case scenario is a flexible term that can be loosely predicted based on a combination of factors. The current market sentiment, the bullish-bearish interaction and a healthy dose of subjectivism.
We would like to believe that punters are objective in their predictions but over the years, I've noticed that everyone's Bitcoin target is a loose reflection of the individual's bullishness or bearishness. The usual haters will be out in arms, interpreting the charts as doomsday, while the believers hardly go superlative on the negative.
When you put both bearish and bullish views together, you'll land somewhere in the middle and for the most part, Bitcoin tends to stay within that range. This is particularly true in hard times like these.
For what it's worth, I'm a believer so forgive me for having a skewed view of the crypto market. I think this FUD event is only just another bump in the road that must be overcome for the growth of the industry.
It has been quite the bumpy road for those of us that have been on the journey for the past few years. Unfortunately, there will still be more bumps along the way and odds are that the bumps will be much bigger than what we're experiencing today.
The crypto hunt
Looking at the situation from the outside, it does seem like there's an intentional move by the feds to clamp down on crypto activities. Some of the decisions have been anti-crypto and pandering to the woke brigade.
According to Cointelegraph, there's going to be an astonishing 30% tax placed on revenue from crypto mining. This is obviously done in a bid to reduce mining activities in the country.
If I were to guess, I'm sure you'll find that it has something to do with climate change, saving the planet and all those things woke people say. Now I don't have enough detail about it but I'm pretty sure that Bitcoin mining isn't as bad as they're painting out to be.
I mean, in the grand scheme of things, Bitcoin miners aren't nearly as many as all the cars, busses, trains and other greenhouse gas producing equipment doing real damage. This is just a thin veiled and not so clever way to once again antagonize crypto.
The feds have done all sorts to hurt the crypto industry and now that the market is bleeding, they'll continue pressing the neck. The market refuses to die, no matter how much pressure from the foot hits the neck and that must be rather infuriating to the Feds.
Builders of projects and holders of crypto represent the last line of defence for the market. We're trying to create a borderless world where businesses and projects can thrive without filling out too much paper work.