To the Editor,
I’ve had a lot of conversations about the increasingly-popular crypto market, including the recent tank in the market (of which I’m not worried). Though there are a variety of causes, the three main driving factors for this sell-off are: North American dollar inflation within the last couple years in relation to Bitcoin’s worth; China vowing to crack down on bitcoin mining; and China’s reiteration of banning non-professional investors (retail investing is something you need a licence for).
Many are selling off, but a small consolation about that is the Chinese law actually came to pass in 2017, which is being incorrectly circulated right now as a much more recent piece of news and it gained traction.
Another market trend is the market manipulation being caused by the big Wall Street boys, as news of the SEC lawsuit with Ripple, which will set a precedent in the North American market on how the exchange commission will regulate and treat the crypto companies moving forward. Wall Street was buying up Bitcoin in a frenzy from February to the end of April, causing prices to soar (known as “bulls on the run”).
As hype builds, and retail investors jump in all hearing about how much they can make, it circulates on social media and mass sell-offs begin. This sparks retail markets (us common folk) to panic sell.
Meanwhile, those that started their early sales when the market was at $65,000 to $71,000 watched the market drop and re-bought at around $32,000, effectively doubling their holdings – JP Morgan’s old trick in the stock market. These are not new plays. Just old players in a new version of the same game.