"New federal regulations could spur cryptocurrency crash"

TreasureHunter

TreasureHunter

Well-Known Member

There is a lot more in the article - worth checking the source - they believe that a crash could be similar to the "Dotcom bubble" burst:

"...came rumors that crypto-hating Treasury Secretary Janet Yellen was about to go on a holy war against digital currency, causing a flash crash last weekend. And late this past week, on top of reports that President Biden is looking to hike capital gains taxes for the rich, there were rumors that Yellen wants a jaw-dropping 80 percent tax rate for crypto. That helped send bitcoin tumbling near the $49,000 mark on Friday.

If you believe market history often repeats, and there’s lots of evidence it does, consider what came out of the dot-com bubble of the 1990s. When the bubble burst, the losses were staggering.

Companies like Pets.com came to market with high valuations only to fall into insolvency. The Nasdaq reached a then-high of 5,000 in March 2000, then dropped to less than 1,500 two years later, triggering $5 trillion in investor losses."

SOURCE:
https://nypost.com/2021/04/24/new-federal-regulations-could-spur-cryptocurrency-crash/
 
Not much of a problem, investors will likely hold their crypto rather than sell in order to avoid CGT and instead use them as leverage to borrow fiat pegged stablecoins or stake them.

It could even dampen the volatility.
 
People are leveraging up to insane levels with Bitcoin. A bit of bad news comes in, you see a bit of a drop, and then there is a cascade of liquidations of over-leveraged idiots and we start the whole process again to get to a higher point.

As for me, I BTFDéd the shit out of the dip.
 
Didn't read it fully thought it was referring to the recent "crash".

There a re some analogies to the Dotcom bubble but I don't think you can draw direct comparisons. Some might say 2017-2018 was the equivalent of the dotcom crash. After the dotcom crash it seemed like all hope was lost for a year or 2 and the image of a dotcom world was just a mirage. Wasn't easy being in the IT industry at the time. We know how that all turned out though.

At the same time, we still need to clean the market out of 99% of the shitcoins, so another crash could be somewhere down the line, it's not something I'm discounting. I feel like BTC isn't quite as volatile any more though.
 
Last edited:
You must log in or register to reply here.
Back
Top