Analyst predicts impending regulations will trigger crypto ‘cleansing’ – here’s the silver lining
A popular crypto trader expects the government to crack down on the industry, but not as quickly as some doomsday think.
The pseudonymous crypto strategist Credible says to his 337,700 Twitter followers that he is concerned by news that part of congressional Democrats’ new spending bill includes a provision for the IRS to receive $80 billion in funding plus the potential to hire 87,000 new employees.
The analyst believes that regulatory cuts and tax controls on crypto investors are likely to cripple the industry, but there is still one very bright spot on the horizon before markets are torpedoed as a final mega-rally outpaces the government’s slow march.
“Probably leading to the next perennial bear [market]. A dot-com era bust fueled by new regulations across the crypto space wiping out 90% of what’s out there right now.
We still haven’t seen a major purge yet, but it’s coming in my opinion.
Another new all-time high first – regulators are moving slowly.”
As for Bitcoin (BTC), Credible follows up on an August 8 tweet where he so he doubted the strength behind last week’s rally and looked for more price drops after the initial correction.
The map guru is now convinced that the BTC run-up was actually a hoax and he expects a choppy downward action that eventually takes Bitcoin below $22,000.
“It was right to be skeptical about that rally, it appears to have been a sham.
Just tapped into the local demand region I saw earlier and I think we may see some short-term relief from that, but look for a rejection at RED and continuation down to our original targets.”
At the time of writing, Bitcoin is trading at $23,962, up 6% in the last 24 hours.
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