The Market was looking very strong Earlier today.
We had a very strange kind of double-ascending channel. Even if we broke support on the top one we could still fall back to the latter.
A few hours ago the market "flash-crashed" to this lower support line. The market is showing some signs of weakness. The fear of a bounce off ATH resistance is real.
Coinbase CEO: Trump Administration May ‘Rush Out’ Burdensome Crypto Wallet Rules
Last week we heard rumors that the U.S. Treasury and Secretary Mnuchin were planning to rush out some new regulation regarding self-hosted crypto wallets before the end of his term. I'm concerned that this would have unintended side effects, and wanted to share those concerns.
These regulations would require KYC for every wallet that American Exchanges send crypto to; meaning that you would not be able to withdraw from American exchanges without registering that wallet with Coinbase who would then register it with the IRS.
This is a terrible idea for obvious reasons, and a perfectly predictable outcome. The establishment is continuing to tighten their grip across all sectors and dictating this "new normal". It's really only a matter of time before something like this becomes law.
When someone evades taxes using cryptocurrency the IRS needs evidence to support that certain wallets belong to certain people. This regulation would accomplish just that. However, what it fails to take into consideration is that decentralization is explosive and disruptive.
Regulations like this will just create demand for other onramps into crypto; ones that are much much harder to track. Imagine someone paying for Bitcoin with cash or random transactions on Venmo or Paypal. Try as they might, they aren't going to be able to regulate this space and will only serve to choke out corporations.
The overhead cost of doing these invasive KYC requirements puts a large burden on United States exchanges. I imagine they will fight against such nonsense in court and on the battlefield of politics and lawmaking via lobbyists. Not sure if they will win or not but it should be interesting nonetheless.
Conclusion
Again, a "dip" from $19500 to $17150 is only 12%. It also appears that the market may recover quite soon from this little setback. As I've said time and time again, news can only push the market in the direction it wants to go, and potentially temporary setbacks like this could evaporate in as little as a few days. I guess we'll see.
In the long run, these actions will only serve to hamstring the centralized authorities that issue them in the first place. Regulations like this one proposed will create a vacuum in the market and place strong demand on privacy features.
Regulators think they can stop the black market from moving into this sector. What a foolish notion; they are the ones creating the black/grey markets with their rules. At least with Silk Road it was easy to convince Average Joe that drug dealers are bad. It's a bit harder to convince people that privacy is bad when corporation after corporation gets hacked for all their data.
If we truly are at the top of this bull run, news like this will send the market tumbling down for a while (probably until we hit the doubling curve at $15k in Feb). However, again, I just think this little dump is simply a welcomed retracement in a market that's done nothing but go up for over a month. I still think we have at least another month of 'up' to go. Here's to hoping I'm right.
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That's quite a shot in the arm for DEXes. How many people discovered uniswap as a result of this tease today?
DEX are the future
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Sorry about dropping the link but here's my take on the issue:
https://leofinance.io/@reonarudo/how-to-render-kyc-aml-impotent
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IMHO This is just the normal whales dumping when price skyrockets. It is pointless trying to speculate on what/how some news affected the price of Bitcoin.
It is just a big game for these guys who bought 1000s of BTC back in the day play when it was worthless.
It doesn't even make me flinch anymore.
That's exactly what I want to hear and is the same thing I've already stated multiple times :D
You can't x10 the price without everyone holding their bags thinking, "Hm, wouldn't it be stupid to not take x10 gains?"
hehe.. Exactly
The silver lining is that this is just rumored currently, though I have no doubt it is real. This was always a possibility with crypto, now we just have to wait and see just how heavy handed they are going to come down with this. There goes your no dip November...
Why would that alone be a problem? You'd have to register one extra address to send your funds to from your other private addresses before sending them to an KYC'd exchange.
If regulators get it in their heads to criminalize all transactions between non-registered and KYC'd addresses, then we'd be in trouble. All funds outside of centralized exchanges would be locked out of all fiat off-ramps forever. That would totally destroy the market. All such funds would have to be offloaded illegally and at a steep discount. If they ever wanted to get rid of crypto altogether, that's what they'd do.
At the same time, Russian oligarchs are allowed to launder hundreds of billions through Western banks that only get a slap on the wrist when they get caught. The little guy has to go through this KYC/AML nonsense whereas the big boys use the traditional methods like they have always done.
One solution possibly in the cards to legalize everything would be to require all public blockchains to add metadata to all addresses that allows all of them to be linked to a real world identity. Then all node operators would be forced to check every transaction against a blacklist making not blocking a transaction involving a blacklisted address (= any address not registered with a centralized database or a separate identity blockchain) on the pain of a bazillion years in the worst prison Wedding Bomber operates. Wedding Bomber would threaten prosecute anyone on the planet based on any flimsy claim to jurisdiction.
I certainly don't welcome any deceleration on my moon rocket journey.
Just one month? If stocks, bonds and commodity markets are any indication the average bull market should last longer than the average bear market.
I hope for less volitility. Even though overall the prices rises, in general we need to see more up days than down days. It will make owning bitcoins less stressful for average investors.
Well I think the macro mega-bull run should last until Q4 of 2021 but this local bull run should deflate pretty hard in Jan and Feb.... might even be doing so now... which would actually be nice because then 2016 is still very similar to 2020
The macro bull trend through 2021 is also what I'm hoping for. Korea will start taxing this stuff in October 2021, so the higher the price then, the higher the baseline.
I read about a few reasons for this week's detraction, some like OkEx re-opening withdraws are plausible. Others less so.
The market was ripe for a correction and this trial balloon was the excuse. Actually very healthy long term. Now's the time for buy the dip analysis. 😎
Yeah the question is buy here or wait for the full 30% retracement. I'm leaning more toward buy here but then again I always lean to the ultra bullish side.
I'm thinking sideways for a few months with an absolute floor no lower than 15k. The 20 and 50 DMAs play prominently in this type of situation. Range traders love it. The key is finding the bottom of the range. 🙂
I'm going to post something tomorrow that will hopefully help. Not advice. 😉
Yeah $15k is super solid. I'd be a bit surprised to trade sideways for months though. That would be great though... as stability always provides a jumping off point for the next leg up.
IMO this was never a question IF it should happen, but more the WHEN it's going to happen. Unfortunately it came a very bad moment in this rally
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The news nake a big impact on the market some tkme for short time only...
The he is known for making statement and keep himself in news...
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That was quite the switch from sending Trump signed government checks out to everyone. It's funny they can spy on anyone they want but need our wallet info for the IRS. Makes as much sense as trying to fit a circular block in the square hole.
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the crypto market burned 80 billion dollars ... madness
This negative news was the excuse to liquidate some Bitcoin and raise cash
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Can one invest in Coinbase?
If they get that passed $$$$$
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could this push the option for buying stuff with crypto to faster development?
I guess we'll see in the next few weeks! Otherwise, I think it's a good time to buy some coins at a discount price! :D
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