Nobody understands what is going on in the market currently. It is a bloodbath; the markets are crashing, Bitcoin is down, some coins are down by over 40%, and it feels like the end of the world for some people, and some people believe that this may be the start of a bear cycle.
Most of the people who are selling their crypto are bought recently, especially at some particular peaks. They are panic selling and trying to escape before Bitcoin completely crashes.
Several things are causing panic in the market; there is the Elon Musk FUD, Resurgent Tether FUD, China Ban FUD, Used for Crime FUD, and Regulatory FUD. We all know Elon Musk started the trend when he came out to say that Tesla will no longer accept Bitcoin as payment.
The main thing scaring everyone today is the China Ban. The market was already very sensitive after the Elon/Tesla saga, people were already scared, and now China banned Bitcoin again. Although people do not want to look at it from this perspective, some analysts believe that this is coordinated and planned by the whale elites linked to financial institutions and controlling the media. If you notice, it has technically been an attack one day at a die, and this China ban was the final straw. They believe that these elites are playing a psychological game of trying to manipulate you into selling your Bitcoin and altcoin so that they can hodl it at cheaper prices.
This current fud from China is not new news; this particular story is not new; the truth is that China did not just ban crypto, but three different Chinese organizations came together to reaffirm the previous laws which apply to cryptocurrency. Nothing new happened; in fact, they more or less reminded us of the already set and enshrined laws that were concerned with cryptocurrency.
Those laws ban financial and payment institutions from the cryptocurrency business. As a result of this law, China cannot experience cryptocurrency the way America is. For example, some weeks ago, America approved that banks can sell Bitcoin, but because of these laws in China, that cannot happen. These laws are old laws; they have been around for a while.
As financial institutions will no longer be able to use cryptocurrency, payment institutions will not be allowed to use cryptocurrency. These payment institutions are like the Chinese version of Paypal, Venmo, Mastercard, etc. They will not be allowed to offer crypto services.
It is not that big of a deal as it will be difficult for them to access cryptocurrency the way it was difficult back in 2017.
People are still not allowed to invest in token sales, there is still control over the mining industry, and there are still heavy regulations of what is and is not allowed.
People are panicking over a “reminder,” and the mainstream media capitalizes on this as the whales are using things to get retail investors to panic sell so that they can hodl at cheaper rates.