Crypto decline the last few days

[Lordgarrett99]

crypto has taken a massive market drop very recently, like the past few days recent, and its major news.

things to note:

Russia is the biggest player from what I see in this price fall, but overall its due to a few things:
1 . Russia's central bank Proposed a ban on crypto mining, trading, and use, however owning it is ok (as of now). source: https://www.reuters.com/business/finance/russian-cbank-proposes-banning-cryptocurrencies-crypto-mining-2022-01-20/
2. the EU markets regulator proposed a ban on a certain type of "energy intensive" crypto mining, called Proof-of-Work (P.O.W) mining. this EU official also said that there are more energy efficient ways to crypto mine, such as Proof-of-Stake (P.O.S) mining. source: https://www.coindesk.com/policy/2022/01/19/eu-markets-regulator-calls-for-ban-on-proof-of-work-crypto-mining-report/
3. this one is my opinion: but the fact that $205Bln+ of value in the crypto market has been lost in 24 hours, will self prompt people to sell off their crypto out of fear.

now, regarding point 3. the opposite could happen or is already happening, people could buy up alot more crypto or be persuaded to join the market because its on a down curve and is "bound to go up".

im curious of peoples thoughts on this plus 2 main questions:

-will crypto bounce back like some experts (take that word with a grain of salt) are saying?
-how likely are other countries to follow suit in banning/regulating crypto?

 

[Vavrik]

-will crypto bounce back like some experts (take that word with a grain of salt) are saying?
-how likely are other countries to follow suit in banning/regulating crypto?

Yes, and 100% in that order.

The main difference between Crypto markets and Stock markets basically boils down to the amount of regulation. Crypto has near none, so many countries will try, unsuccessfully at first, to regulate it. That will drive more to regulate it and eventually it'll be hard to buy an unregulated crypto currency.

As far as the first point goes, one of the things that is attractive about crypto markets to big investment funds is that the market is largely full of lemmings. Someone farts on YouTube and they're all selling. Then the big boys get to buy up more of the market at a discount. By the time the lemmings realize it, too late. The price is up, and they lost. Used to happen like that in the stock market, still does to some extent, but the stock market has build in regulatory breaks that allow some sanity in the mess.

That's my opinion in a nutshell, but you really want @Montoya to wade in. Only a lemming would argue with him about what he thinks.

 

[Aramsolari]

My Crypto (which arguably isn't that much) is on a hardware cold wallet. The relative hassle of getting it on a crypto marketplace and selling it discourages me from well....selling. Due to this reason I'm a long 'hodl' guy and well it hasn't let me down. BTC has to plummet quite a bit more for me to be in the red.

People sell when crypto plummets like that, I'm actually licking my chops to buy more.

Same goes for the stock market. Hoping AMD and RBLX drops further.

Oh I only buy and sell. I'm too faint hearted to play options. You have guys getting wiped out right now (in both crypto and stocks) who are playing options ON margin.

 

[BUTUZ]

This is just the same stuff we go through every year.

 

[NaffNaffBobFace]

Hows this all going? I don't follow is it still falling?

It occurred to me this morning I don't know jack about what causes a crypto currencies value to fall and what might cause that - is it simply taking the value out of the currency compared to how much IRL currency is in the system? So for example if there were 100 NaffCoin and I had £1 IRL money in the currency, each coin would be worth 1 penny. If I had £100 in the currency it would be worth £1 per coin. If I had £1000 in the currency it would be worth £10 a coin? And transversely if the number of NaffCoin went to 200 NC when there was only £1 in the system, each coin would then be worth only 0.5 of a penny?

Is that how this works?

 

[Lordgarrett99]

Bitcoin climbs into positive territory after falling below $33,000 to a new low

Bitcoin climbed into positive territory after falling below $33,000 to a new low.

www.cnbc.com

heres an update, Its worse

 

[Montoya]

That's my opinion in a nutshell, but you really want @Montoya to wade in. Only a lemming would argue with him about what he thinks.

Why you guys looking at prices? Turn off screen and come back in 6 months!

 

[Radegast74]

Interesting, I was meaning to do a comparison of BTC and the S&P500 during 2021...haven't gotten around to it.

It will be interesting to see if a bunch of people bail on BTC if it goes below $30k, I was reading that "reliable sources" were saying that was where a lot of people bought in, and would likely cash out if it fell below that.

 

[Vavrik]

Why you guys looking at prices? Turn off screen and come back in 6 months!

I'm not investing in crypto. No time or interest right now. Too busy trying to make some real money. I'm starting a company. At my age, in the middle of a pandemic. What am I, nuts? Maybe probably sort of. I'm also taking care of a client that I sub-contract with just so I can pay bills will I work out some reasonable assumptions for a startup's business plan. I am a strong believer in that, even for a sole proprietorship or LLC. (I picked LLC btw, at least for now)

I can't talk much more about it at the moment. I mean nothing quite like giving away the cattle while you're building them a barn.