What is happening with Crypto?
Hey Steemit people,
This is my first post, I hope it's helpful and to your liking.
So, what is happening to crypto right now? Why is it crashing?
Here are 3 points I think should explain the recent crashes.
1- Every day we see another article coming out spreading FUD. Country ''X'' wants to ban crypto!
News outlets were all about crypto in 2017 and rightly so. The market went only one way and that was UP!
The more positive news they would put out, the more people would read or watch the news. Now, it's the complete opposite. The more fud, the more news articles, the more people would read/watch the news. This is playing a major part in the recent crashes. My guess is, they are probably backed by some high-level politicians to keep the fiat alive.
2- Lunar New Year: Look out for the 16th of February. The Chinese New Year is known to get people to panic sell. Since China goes on vacation during that period, they tend to sell their assets while they're gone and buy back later on. You can see it on historical graphs, every Lunar New Year there's a little pullback. But would this still happen once or if China bans crypto trading? We will have to find out.
3- The G20 summit in March. ''U.S. Treasury Secretary Steven Mnuchin has indicated he is planning to raise the subject of cryptocurrency regulation during an upcoming G20 summit to be held in Argentina in March''. This is not the first time this would happen. In 2015 the G7 also talked about digital currencies. But I guess that didn't have much effect on the market. They won't ban crypto during this meeting, they will discuss the matter. Regarding ICO's, regulations with the SEC, the speculative aspect of crypto, etc... So why would this be affecting the market you ask?
4- Pardon my French but many new investors are dumb and don't know why they are investing or in what. They see good news so they buy, they see bad news, they sell. As they say in the crypto community; Just HOD'L! If you hold your coins because you know what you are investing in and believe in the tech behind it, why would you sell? Because everyone is selling? If everyone holds their coins even when FUD comes out, the market won't move. Which will lead to a stable market and the FUD will eventually be non-existent since the market is not going down.
To conclude, all the new investors that think they'll become millionaires in a day. Guess what? Not going to happen. If you want to make money, have some patience. You think all those people that got filthy rich in 2017 didn't have patience? Those guys held their Bitcoins since 2011, they held for a year or more.
Lastly, it's us (the community) vs. the politicians/News Outlets and all the haters. If we stay strong they'll eventually back off.
I hope this was helpful. If you liked it please hit the Upvote button or comment below and follow my channel for more content like this.
See you in the next article!
This is not financial advice, I'm not a financial advisor. Please do your own research and invest safely.