Crypto Lunacy as China Attacks Bitcoin
When you have been around for a while you can almost just about figure out what part of the cycle you're in just by the type of content that is created and distributed across the chain.
Bitcoin dips and a few hours later as if on que all the mainstream media commence saying "this it is" Bitcoin is finished and news headlines start producing states and charts that show an almost certain bitcoin death.
Just as that tapers out there is a slight peak in Bitcoin price, quite often not by much and then everyone starts calling Bitcoin to $100k. Followed by a heap of people that buy in then get rekt as it dips again.
This part is often followed by... China. If you have been paying close attention China always does something related to Bitcoin they're abit like the old Tom and Jerry cartoon. Although China is running out of things to do so now they have resulted in creating news in their state run paper stating Bitcoin is going to zero. This also closely follows their announcement that they are making their own crypto currency.
China bans Bitcoin (again)
China has also banned Bitcoin in what many thought couldn't happen not because Bitcoin is unbannable but because Bitcoin is already banned. This time though it is as a payment system and the new ban ensures no one can purchase anything with it while also spruiking the e-Yuen in a move to make China a cashless society.
Three Arrows gets liquidated
There is one thing a little different in this crypto purge which is making news and that is all the institutional companies being plunged into liquidation with The Arrows now being liquidated. This is not a new phenomena despite being reported on all that is occurring is that previous projects that went bust and there were many each year, weren't registered.
The crashes have been a lot larger and more harmful because the perception of legalised entities operating within the crypto sphere has grown. Retail and institutional investors anticipated that they were safe bets only to be fooled.
When you run through the companies financials and see how they were operating in the sector you can't help but think they were rookies. Crypto markets are quite repetitive in that they go up up up then one big down then start again.
These companies were operating on a model that was incorrect and were constantly pushing debt levels to their absolute limit. Taking risks with money is easier when it is someone elses I guess.
Perception brought false hope
The perception of regulated agencies brought false hope which in turn brought in more money which in turn inflated a larger cycle. Either way we are in that period still of everyone hating on crypto and while it has a massive crash it will most likely return in a few months as it always does.
To what level no one knows.
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