Now before we start let me remind you i am not a financial advisor, invest with caution and only take the following statement as to what my opinion is. As we woke up this morning we saw that Bitcoins price fell short of 30k, as of now its $29,848. Does this mean we have entered the bear market and the bull run has died? I'd venture to say no the bulls not over, just retracing after the manipulation of Elon Musk and other celebrities'/billionaires.
Edit Image Now we might say "so what, bitcoins market is massive." An while that may be its being hit significantly hard due to the countries like China destroying the mining operations, China has manned the helm of bitcoin mining. " 2021 data for the global distribution of mining power is not yet available, but past estimates have shown that 65% to 75% of the world’s bitcoin mining happened in China – mostly in four Chinese provinces: Xinjiang, Inner Mongolia, Sichuan and Yunnan. Sichuan and Yunnan’s hydropower make them renewable energy meccas, while Xinjiang and Inner Mongolia are home to many of China’s coal plants." per CNBC.So China is shutting down Bitcoin miners, Elon doesn't "like" bitcoin and I use that term jokingly. So where is the silver lining? Well it starts in September when El Salvador officially adopts Bitcoin as its nations currency. I feel as though this move is very over looked by the crypto community. As much as charts do have a tendency to repeat themselves (mainly because people try to follow patterns subconsciously); this may be a different time. As the Geo-Political space around cryptocurrency and blockchain changes it could have real effect on the market like we see now with mining coming to a almost stall. This will also be felt when the US updates its capital gains tax brackets. However if you understand Forex( The foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies) then you will know the 60/40 rule( The 60/40 Rule provides that gains and losses on all future contracts subject to the Mark-to- Market Rule are taxed as 60 percent long-term and 40 percent short-term capital gains and losses).So with Bitcoin becoming El Salvador's legal currency this changes the game plan for crypto investors/day traders. This move could add billions of dollars into the daily life of Bitcoin. I would not see this become a catalyst of solutions to places suffering from extreme inflation.
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