{"id":464178,"date":"2021-05-20T08:20:00","date_gmt":"2021-05-20T08:20:00","guid":{"rendered":"https:\/\/uniquehot.com\/?p=464178"},"modified":"2022-07-21T19:45:47","modified_gmt":"2022-07-21T19:45:47","slug":"reliving-the-fud-that-led-to-this-weeks-bitcoin-crash","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/reliving-the-fud-that-led-to-this-weeks-bitcoin-crash\/","title":{"rendered":"Reliving The FUD That Led To This Week’s Bitcoin Crash"},"content":{"rendered":"

It is the worst of times. It is the best of times. It is the age of fear, uncertainty, and doubt. Nevertheless, Bitcoin\u2019s fundamentals remain intact. The project\u2019s value is still there, despite the disastrous drop in price. It was all going so well. How did we get here? Actually, there are a lot of valid reasons. Let\u2019s review all of the causes that lead to this FUD.<\/span><\/p>\n

As you know, everything started through Elon Musk\u2019s fingertips…<\/span><\/p>\n

Tesla\u2019s \u201cEnvironmental Concerns\u201d<\/span><\/h2>\n

When Bitcoin was on its way up, Elon\u2019s company gave it the push it needed. Tesla announced ownership of $1.5B worth of Bitcoin that, apparently, remain on its balance sheet. The crypto community celebrated the move, profits followed. The coin\u2019s legitimization seemed to take a step forward. And then\u2026<\/span><\/p>\n

Inexplicably, Tesla announced they were not accepting BTC as a form of payment anymore. Despite wild speculation, no one knows what happened. In his <\/span>tweeted announcement<\/span><\/a>, Elon cited \u201c<\/span>rapidly increasing use of fossil fuels for Bitcoin mining<\/span><\/i>\u201d as the reason. Few people inside the crypto community believed it. Everyone outside of it did. And even though Tesla clarifies they didn\u2019t sell any of their Bitcoin, the FUD set in. And retail investors started selling.<\/span><\/p>\n

If you want to learn about <\/span>Elon\u2019s real views on the matter<\/span><\/a> and about everything the crypto mining industry is doing regarding green energy, head over to Bitcoinist, our sister site.<\/span><\/p>\n

China\u2019s Tightening Up Its Bitcoin Policies<\/span><\/h2>\n
This generated lots of FUD. The People’s Bank of China seemed to announce clear and unfavorable rules regarding cryptocurrencies. <\/span>Yahoo Finance<\/span><\/a> reports:\u00a0<\/span><\/p>\n
\u201cThis is the latest chapter of China tightening the noose around crypto,\u201d said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender.<\/span><\/p>\n
Virtual currencies should not and cannot be used in the market because they\u2019re not real currencies, according to a notice posted on the PBOC\u2019s official WeChat account. Financial and payments institutions are not allowed to price products or services with virtual currency, the notice said.<\/span><\/p><\/blockquote>\n
Nevertheless, as with most things on this list, the announcement didn\u2019t amount to anything specific yet.\u00a0<\/span><\/p>\n
$\"\"$ <\/p>\n
BTC price chart on Bitstamp | Source: BTC\/USD on TradingView.com<\/a><\/pre>\n
The US OCC Turns Its Eye To Cryptocurrencies<\/span><\/h2>\n
The newly announced Acting Comptroller of the Currency, Michael Hsu, revealed that the agency he presides, the Federal Reserve, and the FDIC are reviewing their policies on cryptocurrencies. This isn\u2019t necessarily a bad thing, it might lead to clearer laws and stronger governmental support. Nevertheless, the FUD doesn\u2019t mind that fact.\u00a0<\/span><\/p>\n
Hsu\u2019s <\/span>statement to the Committee Of F<\/span><\/a>inancial Services reads:<\/span><\/p>\n
Shortly after I started, I requested a review of key regulatory standards and matters pending before the agency. Those items include the 2020 Community Reinvestment Act (CRA) final rule and associated NPR related to performance benchmarks, interpretative letters and guidance regarding cryptocurrencies and digital assets, and pending licensing decisions. For each, the review is considering a full range of internal and external views, the impact of changed circumstances, and a range of alternatives.<\/span><\/p><\/blockquote>\n
Binance Under Investigation<\/span><\/h2>\n
The US government turned its eye towards Binance. Apparently, blockchain investigator firm Chainalysis found a pattern. It showed a considerably higher percentage of funds from criminal enterprises flowed through Binance, compared to other exchanges. <\/span><\/p>\n
The world\u2019s largest cryptocurrency exchange, Binance, is under investigation by the U.S. Department of Justice and Internal Revenue Service (IRS), according to a report from <\/span>Bloomberg<\/span><\/a>.<\/span><\/p><\/blockquote>\n
Even though it\u2019s just an inquiry and nothing might come of it, the FUD it generated within the community cannot be ignored.\u00a0<\/span><\/p>\n
Related Reading | Market Sentiment Hits Low As Binance Has Largest Bitcoin Inflow Ever<\/a><\/strong><\/em><\/p>\n
India almost bans cryptocurrencies<\/span><\/h2>\n
A total crypto prohibition was on the table once again, but India\u2019s lawmakers turned the ship at the last minute. Word on the street is that they\u2019ll pass clearer regulatory laws instead. <\/span>The Economic Times<\/span><\/a> reports:<\/span><\/p>\n
The central government may form a fresh panel of experts to study the possibility of regulating <\/span>cryptocurrency in India<\/span><\/a>, three sources privy of the discussions told ET. This comes amid the prevailing view that the recommendations by a committee headed by former finance secretary Subhash Garg in 2019 for a blanket ban on these assets had become outdated.<\/span><\/p><\/blockquote>\n
This new rumor arrived yesterday, but the FUD that a total ban inspires was around for a while.\u00a0<\/span><\/p>\n
Is This A Coordinated Attack? Or Is The World Just Going Nuts?<\/span><\/h2>\n
We can\u2019t confirm or deny this was a coordinated attack on Bitcoin and cryptocurrencies in general. Maybe the upper class, transnational corporations, and high rollers of all kinds want to buy your BTC at a discount. Market manipulation is as old as markets. But, maybe, this perfect storm of bad news is what happens when the best performing asset that the world has ever seen takes over the world\u2019s headlines. All eyes turn to it, and all fingers start poking.<\/span><\/p>\n
However…<\/p>\n
\n
crypto vets pic.twitter.com\/nsDzzLzMtv<\/a><\/p>\n
— intern (@intern) May 19, 2021<\/a><\/p><\/blockquote>\n