What Happened On Black Wednesday?
How nothing caused the crypto markets to crash
Hey DEFI TIMES community,
On Wednesday, Bitcoin fell from $43,000 to almost $30,000 - a drop of 30% in a single day!
The last time we saw such a significant drop was March 2020; however, this time we have ten times the market capitalization than in 2020.
People were scared!
Elon Musk put out several Bitcoin-critic tweets over the last days - people were speculating that Tesla sold all their BTC. Long story short, it was only speculation; Tesla didn’t sell!
What was the China news story about?
China banned cryptocurrency services for institutions in 2013 and 2017. And now, these regulators reiterated their stance on banning crypto services for institutions. Therefore, nothing changed in China. It was just a repetition of the regulation a few years ago. Sadly, the market totally misinterpreted this news story. The markets thought that the regulations were new!
Both the Elon & China FUD lead to the crypto markets taking a deep dive on Wednesday!
Whenever such a flash crash occurs, you should ask yourself: Did anything change?
In this case, nothing really changed. Tesla still owns its BTC and China imposed no new regulations.
The drop might have been totally… irrational!
And it may only be a matter of time until the markets come to realize it.
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Aave CEO Stani Kulechov teased Aave Pro, which will be only for institutions. At first, it will be permissioned but other features will remain permissionless.
Elon put out a number of Bitcoin-critic tweets during the week. This lead to speculations that Tesla sold their BTC. THe markets took a deep dive on Wednesday.
Rest assured! Tesla has Diamond hands!
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China crypto ban
The China FUD is back! Chinese authorities reiterated previous crypto bans for institutions. It’s not new though!
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DISCLAIMER: All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.
Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.