Bitcoin Drops, Rest of Market Falls Too

Today's a red day. You know what to do...

It’s been a bloody couple of hours or so for Bitcoin and the rest of the cryptocurrency market. As I type this, Bitcoin has dropped over nine percent, and many of the other top coins are down 10-15 percent too.

Why? It’s not quite clear.

However, the signs of a selloff have been in the market for the last week or so. When Bitcoin tested its recent all-time high of $68,789 last week (Coin Market Cap’s number), the market rejected the price point. The support wasn’t there, and the asset took a bit of a slide.

That’s one thing to note.

Another—economic indicators across all sectors are confusing. Stocks are at all time highs, inflation has entrenched itself into just about everything, and investors are eyeing all kinds of assets as they try to navigate increasingly choppy waters. Do they pick gold? Silver? Real estate? Stocks? Crypto?

Decisions, decisions.

On the heels of that, President Biden signed the $1.2 trillion Infrastructure Investment and Jobs Act on Monday afternoon. Parts of that bill include new regulations and changes for the cryptocurrency market.

Also, China banned Bitcoin again this morning.

Actually, it’s more complicated than that, since the CCP has made it clear several times already that Bitcoin doesn’t have a place in the future of the country (not if they have anything to say about it). But today, China’s National Development and Reform Commission doubled down on efforts to get rid of Bitcoin mining in that country. Measures include higher fines for companies that defy the CCP’s ban on it. And this is notable since several economic indicators have now indicated that China has overtaken the US as the world’s richest country.

As an aside, the entire McKinsey report on global wealth is pretty interesting. Check it out here. As cryptocurrency adoption grows, global forces will have more impact on how the assets perform. That’s just the way it works.

So, it’s a red day.

It might also be a red week. Or a red month. No one has a crystal ball to see the future.

But regardless, days like these are buying days, remember? The blood is in the streets, and it is time to buy. Time to make a move. Now is not the time panic and sell into the losses.

Now is the time to get your favorite assets on sale. And that’s exactly what you want!

The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.