The reason for the recent selloff is. The short answer is that no one knows.
If you haven't been living under a rock, you would know that the whole crypto market is falling in price. But this is not new in the crypto world. Those who participate in it know that cryptocurrencies are a very volatile asset and that 50% up or down in a few days is regular. Still, even when users know that, people always try to find out why a movement up or down occurs.
Several news articles have popped out recently, and they are trying to explain the possible reason why the recent selloff. You can start with Elon accepting and disapproving of Bitcoin. It was a severe blow to Bitcoin holders because one of the usages for that asset will be to buy expensive luxury goods. That offer is out of the equation for now. Bitcoin is no longer valid for small payments and, as such, is not a currency. It is becoming more and more a network to settle custodian transactions only.
The news says that institutional investors are dumping Bitcoin in favor of gold. Gold is the asset to hold when you have too much money. Printing the yellow metal is supposed to be used as a hedge against inflation, so if inflation is going to be an issue for the US dollar in the short future institutional investors may be betting on the yellow metal for now. But we all know that gold has failed to preserve wealth in the long run because it can be confiscated, and it was seized in the past by the US government, so if it happened before, it would happen again. And if the US government ever sees gold as a threat, you can bet they will impose taxes and more regulation to cut its growth of it, if not outright confiscation of it, just like a few decades ago.
The other reason is the ghost from China. It is an old tool that the establishment uses to scare new investors the fear of China. The Chinese government is a totalitarian government propped up by the greed of the United States oligarchy, which should be considered treason, but the world now works in that system. The news says that China will do this or do something else, but fear, uncertainty, and dought.
And China will have the best interest in ensuring that its citizens don't trade cryptocurrencies because they are keen on their digital currency, which will be of enormous power to an already totalitarian government. The Chinese people will become nothing less than pure enslaved people once they get their digital Yuan because the government will track what the Chinese citizens are buying, at what price, and even at what time.
The Chinese government will also put expiration dates on that currency. Not to forget that if the government doesn't like you, they could turn off your wallet, and just like that, you will starve to death if you can trade for food. The Chinese digital Yuan is the greatest threat to freedom worldwide because they want to import their totalitarian tyranny abroad. Meanwhile, its citizens will be forced to burn their cryptocurrency tokens inside China once the digital Yuan is in full force. The government could implement jail sentences or prison. They could even decree death penalties on anyone holding or using cryptocurrencies or any other digital currency, not the Yuan. And the free world is not far behind because in the US, politicians' wet dream is to have a totalitarian government like China.
And the problem is that all governments worldwide are looking at China as an example. Sooner or later, a politician will try to fix the issues of your country by also implementing a digital currency that could end up doing the same to your liberties. Still, wherever there is darkness, hope will always be there too.
People will realize that you need an independent currency that governments can't print. A genuine peer-to-peer currency that works together for the poor and rich in a common cause will be better. I firmly believe that the peer-to-peer currency is Bitcoin Cash because it has shown that it works and doesn't compromise on decentralization. I hope this recent sell-off has allowed you to hold more satoshis in your wallet for a much lower price.
We may never know why the market is falling may never be known, but it is an opportunity for others to get cheap satoshis. And that is all that matters. The market will do what it must, and you have to take the possibility into your own hands and buy. People who like to spread FUD will be in full force in the following weeks but know that in the end, no one knows what the market will do next.
The Fed increased the interest, and the stock fell off a cliff because there was no more free money from the printing machine, maybe because there were no more stimulus checks, or perhaps all of the reasons above or non of them. And I would add perhaps the Coinbase bankruptcy or even a sell-off to liquidate the MicroStrategy loan.
supongo que convergen varias razones para un desplome de precios de esta magnitud, y claro que no faltaran las ballenas que influyan a la baja para sacar grandes beneficios, quizás tarde una recuperación, a tener paciencia.