We're in a deep ... situation again. If you've been watching the market you know what our beloved BTC did. It dropped below $50k. There's word on the street that Biden's tax announcement has caused the market bleed, as the tax increase on capital gains has scared people. They better sell everything now and pay the 23% now than pay 43.4% or more later.
Others say those who the new law would apply, those with more than $1 million in annual income, are capable of avoiding taxing anyway and that they have nothing to do with the dump.
Obviously it's always good to know what's causing things and why the market reacts lit it does, but in the meantime it's good to also know what is there to do, have a plan B, plan C etc.
I'm not affected by the new law (IF it's going to pass because there's a bit IF there) and chances to be effected ever are basically zero, but it's still nice to know the details.
According to CNBC, Over $200 billion wiped off cryptocurrency market in a day as bitcoin plunges below $50,000. This is huge and there are suspicions that the bitcoin is taken off the market and stored in cold wallets as it most likely was bought by institutions.
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I didn't get hurt and even if BTC's next leg will be way below $50k I won't get hurt, but maybe there's a great opportunity coming that can benefit us.
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ETH looked good today and lucky me, I was able to buy at the bottom and add more to my bags. ETH has a great future and it would be foolish not to invest now and profit later.
BTC is another matter. I don't doubt the future of BTC and know what we're experiencing now is totally normal. It happens. Some analysts say BTC is going to go up from here, reach the $54k level and then drop to $44k, $43k, even to $42k and go up again after some time. Will it happen? Most likely but who knows.
My plan is to invest more in BTC but not yet. I'm planning to wait for the next leg down and buy more at around $44k or $43k but I'm o with $45k as well. It would be great. If I were to choose between buying at $45k or waiting to drop to $43k and risking missing out, I'd say I'm ok with $45k as well. On the long run t will not matter much.
Till then I need to get as much cash as possible, but I'm not going to sell my kidney, mortgage the house or get into debts. I need to set my affairs in order and allocate my funds the best way I can. We may not get another chance, so I have to be ready.
My last investment in BTC was in February, when it went below $47k, since then I've invested very little in BTC, as if I felt the drop is coming. Now I don't want to miss this.
Alts are also important and I'm keeping an eye on them, but it's not time yet to take profits.
What about you? Any plans for the near future regarding crypto?
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I can't possibly predict the future, but I also know that 30% retracements in pretty much all financial markets are not that unusual, even in the middle of Bull runs. Market increases tend to NOT happen in a straight line!
As I write this comment, we are back to about $50,800.
As for the Biden/Capital Gains thing... I'm a million miles from even being remotely affected by that. And there's something ironic there, in that part of the promise of crypto was an end to giant institutional middlemen holding the controls... and those proposed taxes are against "giants." Hmmmm...
=^..^=
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Well, regarding taxing we could discuss till morning but what's the point. If you're based in the US, you probably are closer to it, I'm not.
As about BTC, there's a big fuss and a lot of fud and FOMO.
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I guess on the tax, wouldn't that only impact US citizens, I wonder what proportion of bitcoin is held by US citizens. Perhaps it's quite large but there is a lot of interest outside the US for bitcoin too.
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I guess we'll never know how those BTC wallets are spread around the world as no one likes to advertise how much BTC they hold, unless it's the institutions that has a lot to gain by letting the public know about their holdings.
There's a lot of interest outside the US, trust me, more than you think.
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My ~start to worry~ level is below $33K
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Good luck
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It's a buying opportunity though if it drops more
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Not for everyone.
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i bought LTC just because of the fees and the amount i was able to buy today (i first thought about buying btc). everything was down so i though, why not.
LTC is also a good choice! Maybe I'm going to buy too. Let's see how I will be able to get some funds 😉
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It's all a matter of perspective and timing. The 2018-2020 bear market looked and felt very different for people who entered crypto in Summer 2017 than those who entered crypto in Autumn 2017.
I think it will be the same with this downward movements, whether they end up in simple consolidation or another bear market. Those who entered in Autumn of 2020 are more likely to buy Bitcoin dip than those who had opportunity to fill their bags earlier.
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I don't necessarily agree with that. People buy and sell whenever there's profit to make. Those who bought at a certain price and tend to hold till BTC hit 300,000 or whatever ATH they are hoping BTC can hit, will not buy the dip.
People have different budgets, different goals and different understanding of things.
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