What we’re seeing is… odd.
In reality, there was some extremely good news this week. The US House Of Representatives did something they rarely do – pass bills with the support of both parties.
Among them, some huge changes for cryptocurrency as real action began to stop the US from falling behind. Including plans for classifying cryptocurrencies as an ‘asset’ like gold, rather than a security – finally freeing crypto from regulations written in the 1940’s.
That story barely had a chance to be seen before the markets suddenly plummeted.
Now imagine you’re one of the billionaire (or at least have a few hundred million) investors who made your way over from Wall Street to the crypto markets this year…
We know on Wall Street there’s some investors who just have some fantastic “luck”.
Somehow always pulling out right before the market crashes on the average person. Then, they even know when to put their money back in too – shortly before a stock skyrockets.
When it comes to crypto, there’s still a bunch of these guys on the sidelines – watching the market has them feeling left out – excluded, embarrassed, angry that they had ‘missed the boat’.
Or had they?
Imagine how stupid they feel having no understanding of cryptocurrency, yet average people’s investments are outperforming theirs by hundred percent’s.
But when you’re above the average peasant, you look out for your fellow elite.
We may be looking at the last chance being given for big money to get in at a lower price…
A door opened by their friends who did get in on time. All it takes is a few people controlling large sums to dump their holdings, lowering the price, they re-buy, and so do their friends who had previously been left out.
Thrown out as something being ‘considered’ so the story could be forgotten overnight, the media spent a day scaring everyday investors that Biden wants to tax profits at 43% – more than double the current rate.
Why would the Biden administration willingly float a rumor like this? Well, the financial services industry didn’t give him $250 million (more than double Trump) for nothing. They certainly didn’t give him all that money to someone who would double the tax on their profits either.
But the initial panic caused both crypto and stock markets to take a sharp dive.
Today the stock market is recovering just as fast as it fell, because reality set in. Biden wouldn’t have the votes to pass this even if he wanted to. Obama, with his party in the majority of both Congress and Senate, still wasn’t able to pass more than a 5% raise from 15% to 20%.
So this appears to be nothing more than a perfect rumor to trigger a medium sized, short term drop in the market.
It could all be coincidence…
Everyone hates to think millions of us have just been jerked around with by maybe a couple dozen egomaniacs sitting in their mansions within their gated community. Perhaps they’re just as confused as us.
But isn’t this strange – that regulatory uncertainty was their main reason for not investing.
Then on the SAME DAY it becomes apparent that the US Gov is working to resolve these issues in a way that is favorable to crypto investors – those investments suddenly go on sale at the biggest discount all year?
Today people were given a chance to buy Bitcoin as if they had bought in February. Not a bad deal.
Is all this just a victimless crime? Well, if your life savings was in the form of 0.5BTC, you may have sold in a panic. The market will bounce back twice as fast as it dropped, and someone unable to check the charts while at a day job, or even asleep could themselves in a position of losing thousands just to buy back their original holdings.
But like I said, probably all just a coincidence.
Author: Oliver Redding