The crypto analyst going by “@CroissantEth” on Twitter has spoken at length about all the seemingly coordinated strikes on Bitcoin, which has dragged the crypto market severely.
The “China & Crypto” Tragicomedy
In April, when the flooded coal mine in Xinjiang damaged miners in the area, it resulted in a 35% hash rate drop of Bitcoin and brought up serious concerns about mining centralization.
In May, along with banning Bitcoin mining, China stopped crypto-related transactions in all financial payment institutions. Plus, the CCP (Chinese Communist Party) continued its anti-crypto rally through state-run media outlets that warn citizens about the dangers of crypto markets. This led to a drastic 20% drop in Bitcoin prices.
FUD, FUD, And More FUD
FUD plagued the crypto market in 2021. News of Turkey banning Bitcoin mining, rumors of a crypto ban in India, and misinformation spread by the Twitter handle FXHedge about shady crypto dealings, crippled the market.
On 12th May, Elon Musk announced that Tesla would not accept Bitcoin because of environmental concerns, leading to a sharp drop in price. His continued tweets hinting at “breaking up” with Bitcoin chipped away further at the coin’s price. Even Pope Francis expressed concerns about finding an alternative to Bitcoin over environmental concerns.
Altcoins And Exchanges Took Hits As Well
When news broke on 16th April of Coinbase insiders and early investors selling roughly $5 billion worth of $COIN, the stock was subjected to accusations of a classic “pump and dump” in which insiders and team members dump tokens into retail liquidity shortly after a listing.
The world’s largest crypto exchange Binance has also been in hot water. In June, the UK and the Ontario Securities Commision (OSC) banned Binance from conducting regulated activities in the country. Then, in July, Thailand SEC lodged a criminal complaint against Binance over unregistered operations.
Night Is Darkest Before Crypto Dawn?
“Croissant” believes that the turbulent market is settling down and working out the issues. Environmental concerns, anti-money laundering regulations, Chinese mining centralizations are being addressed and will soon be resolved. Even if a few countries like China decide to stand against Bitcoin, there will be a quick upheaval in the current situation.
The US’s decision to put Bitcoin on Exchange Traded Funds (ETFs) and further institutional adoption down the line cannot happen without challenging the FUD in the market.
In Croissant’s own words,
“There may be choppy weeks ahead, but we will have some serious movement upwards as institutional money & green Bitcoin mining flows into the United States and we watch the greatest transition of hash power to ever occur.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.