Is it over or are we back?

Hi, how are you all?

No no, I am fine too.

Wow, Japanese did us a favour and gave us a good discount on our favourite alt coins. There is 20-50% off going on currently and there might be more.

Here are the key factors of this dump:

1. US Recession fears

The initial catalyst of the sell-off was the jobs report that came out on the Friday. The job growth came in much lower than expected. Only 114,000 new jobs were added in July, compared to 179,000 jobs added in June and 216,000 in May.

2. Japan’s Nikkei 225 index plunges

On Monday, Japan’s Nikkei 225 plummeted due to concerns about a potential recession in the U.S. economy.

3. Rising tensions in the Middle East- Iran vows revenge against Israel

After the killing of Hamas chief Ismail Haniyeh, Iran vowed to take action against Israel, raising fears of a new war. As the situation escalated, the United States responded by announcing it would deploy its military presence in the region.

I don’t know if these are real threats or just temporary news, and if everything will be fine in a few weeks. But have you noticed that when one piece of bad news breaks, suddenly many more follow, as if they were all lined up, just waiting for the first one to start?

Let’s take another example. When BTC dropped to $60,000 few weeks ago, another series of bearish news events started. Here is how they came-

• German Government announced it is selling its Bitcoin treasury.
• Japaneses crypto exchange Mt. Gox begins the repayment in Bitcoin to its user and the news is
  that 99% of total Bitcoin will be sold.
• The Labour Party, which always has “Anti Cryptocurrency Stance”, won the election in UK and
  may impose strict regulations on crypto.

So why is it that negative news seems to come one after another all of a sudden?

The answer is, It is designed this way. The ‘Smart money’ likes to play the game this way. Bitcoin is a trillion-dollar asset with so many major players involved, far beyond what one might imagine. These players withhold negative news and release it gradually, much like the U.S. dropped the atomic bombs on Japan. They hold onto this news to use it as “fuel” when the time is right.

In the first quarter of 2021, the price of Bitcoin surged massively. In April 2021, Bitcoin reached an all-time high, with the price climbing to nearly $65,000. After that, there was a correction to around $47,000, and then the price retested approximately $60,000 on May 10, 2021.

Here is the chronology of events during those months:

14 April– Bitcoin created its all time high by reaching to near 65,000 USD.

17 April– Gary Gensler was appointed as Chairperson of the U.S. Securities and Exchange Commission. Shortly after his appointment, he began making anti-Bitcoin statements. Gensler reiterated the SEC’s stance that Bitcoin is a “speculative, volatile asset” primarily used for illicit activities such as ransomware, money laundering, and terrorist financing. He contrasted Bitcoin with precious metals like gold, silver, and platinum, which have both consumer and industrial uses.

11 May– Bitcoin pumped again to 60,000 USD.

13 May– Elon Musk suddenly realised that Bitcoin is bad for environment. He tweeted “Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel. Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment. Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”

18 May- China banned Bitcoin mining.

I think you get my point here. These things happen each year.

In 2022 we witnessed Luna and FTX crashes and some other major companies like BlockFi, Celsius, 3 Arrows, and Voyager digital went bankrupt. The whole point of Bitcoin was to build a decentralised system so any centralised institution cannot control it and wrong decisions taken by few people can’t have any impact on it but still Bitcoin got affected so much by these centralised institutes and by the wrong decisions taken by only few people who were the heads of those companies.

So what can we do after knowing all this?
Nothing, you can do nothing about it.
So, what is the point of this article?

I wrote it because I saw people getting anxious. After reading this, I hope you’ll find a bit more peace of mind, as this is simply the nature of the market. It always feels like the end is near but it not. Like this

Thank you