April 25, 2021
Currently, the market sentiment is uncertain the dip happen twice already after the recent bull run. The first dip was a correction after the bulls got exhausted, almost all crypto coins reached a new ATH (all-time high). Normally, the price will have correction after the bulls continued pushing the price.
Bitcoin reached $64854, Bitcoin Cash reached $1200, Ethereum reached $2644, Doge reached $.45, XRP $1.96, LTC $335, and more. Almost all crypto coins pump hard but suddenly it dips shaking weak hands and greedy traders, after the dip last Sunday here comes another dip.
BTC dominance lowers to 50% dragging major altcoins, BTC price drops below $47,500 creating FUD (fear, uncertainty, and doubt) to all investors causing a panic selling, especially to small and new investors in the game.
What causes the market uncertainty right now?
There has been a lot of news going on that affects the crypto market right now. Some are breaking news and not official but have major effects on the market.
Turkey Banned Crypto Transactions
Last April 16 news has been spreading that the Central Bank of Turkey announced to ban the usage of cryptocurrencies for payments. Regulators rising nervous with the accelerated adoption of cryptocurrencies such as Bitcoin as a hedge against inflation.
The ban will be effective on April 30, 2021. Turkey's citizens have been alarmed by the escalating financial dilemma which is the inflation reaching 15.4% annually in February, citizens are rushing on inflation hedges like real estate and Bitcoin.
“The country’s central bank cited excessive volatility and a lack of regulation as reasons for the ban; however, it’s more likely to do with the depreciation of the Turkish lira and the rate at which locals were turning to cryptocurrencies for remittance services,”- Sean Sanders, founder, and CEO of Revix.
Want to read more about this? Read it right here.
Although, this news does not affect the crypto market as it was able to recover nicely after the dip last April 16. But the news can be an eye-opener to other countries to ban or regulate crypto.
Joe Biden Administration will propose a 43.4% capital gains tax
U.S.A President Joe Biden administration is planning to propose capital gains tax rate for those who are earning $1 million or more almost doubling to 39.6%. But according to them that would not affect many only 0.32% of American taxpayers that were reported adjusted gross income of $1 million and the capital gains or losses on their returns, according to Internal Revenue Service tax return data from 2018.
The proposal would send the top federal with asset appreciation sold by the rich as high as 43.4% when surtax is included to help pay for Obamacare. It will also upend a century-old precedent of under-taxing investment relative to wages and salaries.
Want to read more about it? Read it right here.
There are also other pictures of why BTC will probably have another dip, some big Telegram channel groups of traders telling that Whales are planning to buy the dip. This scenario is pretty normal when whales are making moves, selling their assets causing the price goes down scaring small investors. Whales paying some to spread fake news to cause panic selling. When the price dips, they will dive in and filled their bags, and begin to rally again.
April 23, 2021, was recorded as the second-largest USDT deposited on exchanges after the first one last February 3 when Tesla bought BTC. This could mean that some whales are planning to buy the dip. The rumors price target of the whales to accumulates BTC is around $46k-45k.
That would be a pretty big shake if it happens so let's prepare our soul and hooooooooooddddllll!!!
All of them are in vain dear. I think big brothers are trying to get some more time while the governments set some rules/regulations for crypto. Then the real party will start ^^