It’s the worst time. It is the best time. It is the age of fear, uncertainty and doubt. However, the basics of Bitcoin remain intact. The value of the project is still there despite the catastrophic drop in prices. Everything went so well. How did we get here? In fact, there are many good reasons. Let’s review all of the causes that lead to this FUD.
As you know, it all started with Elon Musk’s fingertips …
Tesla’s “environmental concerns”
When Bitcoin was on the way up, Elon’s company gave it the boost it needed. Tesla announced ownership of $ 1.5 billion worth of Bitcoin, which appears to remain on its balance sheet. The crypto community celebrated the move, and profits followed. The legitimation of the coin seemed to take a step forward. And then…
Inexplicably, Tesla announced that they were no longer accepting BTC as a form of payment. Despite wild speculation, nobody knows what happened. In his Tweet announcementElon quoted “rapidly increasing use of fossil fuels for bitcoin miningAs a reason. Few people in the crypto community believed in it. Everyone outside did it. And although Tesla makes it clear that they haven’t been selling Bitcoin, the FUD kicked in. And private investors started selling.
If you want to learn about it Elon’s real views on the matter and for everything the crypto mining industry is doing regarding green energy, visit Bitcoinist, our sister site.
Related reading | Bitcoin TA: The following could trigger a bullish reversal above $ 40,000
China’s tightening of its bitcoin guidelines
This generated a lot of FUD. The People’s Bank of China seemed to announce clear and unfavorable rules for cryptocurrencies. Yahoo Finance Reports:
“This is the latest chapter in China tightening the crypto noose,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender.
Virtual currencies should not and cannot be used in the market as they are not real currencies. This is evident from a notice posted on the PBOC’s official WeChat account. Financial and payment institutions are not allowed to value products or services with virtual currency, the communication says.
As with most of the things on this list, however, the announcement wasn’t specific yet.
BTC price chart on Bitstamp | Source: BTC/USD on TradingView.com
The US OCC has its eye on cryptocurrencies
The recently announced Acting Comptroller of the Currency Michael Hsu announced that the agency he heads, the Federal Reserve, and the FDIC are reviewing their policies on cryptocurrencies. This isn’t necessarily a bad thing, it could lead to clearer laws and stronger government support. Even so, the FUD doesn’t mind this fact.
Hsus Statement to the committee by F.Financial services is:
Shortly after I started, I asked for a review of key regulatory standards and matters pending with the agency. These points include the final rule of the Community Reinvestment Act (CRA) for 2020 and the associated NPR regarding performance benchmarks, letters of interpretation and guidelines on cryptocurrencies and digital assets, as well as pending licensing decisions. The review will take into account a number of internal and external views, the effects of changed circumstances and a number of alternatives.
Binance is under investigation
The US government turned to Binance. Apparently, blockchain investigative firm Chainalysis has come up with a pattern. It found that a significantly higher percentage of money from criminal companies flowed through Binance than other exchanges. Bitcoin Magazine Reports:
The world’s largest cryptocurrency exchange, Binance, is under investigation by the U.S. Department of Justice and the Internal Revenue Service (IRS), according to a report by Bloomberg.
“As part of the investigation, officials investigating money laundering and tax crimes gathered information from people who had insight into Binance’s business.”
Even if it’s just a request and may not work out, the FUD generated within the community cannot be ignored.
Related reading | Market sentiment is low as Binance has the largest Bitcoin inflow of all time
India almost bans cryptocurrencies
A total crypto ban was on the table again, but India’s lawmakers turned the ship around at the last minute. On the streets it is said that they will pass clearer laws instead. The economic times Reports:
The central government can set up a new panel of experts to examine the possibility of regulation Cryptocurrency in IndiaET was shared by three sources privy to the discussions. This is due to the prevailing view that the recommendations of a committee led by former Finance Secretary Subhash Garg in 2019 for a general ban on these assets were out of date.
That new rumor got through yesterday, but the FUD, which is triggering a total ban, has been around for a while.
Is this a coordinated attack? Or is the world just going crazy?
We cannot confirm or deny that this was a coordinated attack on Bitcoin and cryptocurrencies in general. Perhaps 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 that perfect storm of bad news will happen when the most powerful asset the world has ever seen takes the world’s headlines. All eyes focus on it and all fingers begin to poke.
Crypto vets pic.twitter.com/nsDzzLzMtv
– CMS Intern (@cmsintern), May 19, 2021
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