Bitcoin price holds despite regulator’s action

It seems incredible to me bitcoinBTC
holds up as the US regulators are clearly intent on strangling crypto to death.

It may sound harsh, but it is obvious that the US government is circling the entire “industry” with the aim of at least driving it underground or at best crushing it into a pocket of confused, regulated niche financial services.

It is understandable with the amount of criminal activity that swirls around the blockchain, without a day going by that unchecked and reckless fraudsters and hackers get away with record-breaking crimes. There has never been a bank robbery on the scale of the crypto hack. So you can see the views of governments when they see it as better to throw the baby out with the bathwater than to risk a mutant financial monster emerging unchecked.

As crypto lovers, we tend to overlook the dark side and see the revolutionary potential, but the vested interests see both sides and like neither.

It may seem unlikely that the US government would conspire to kill an industry until you read Operation Choke Point.

The following businesses were marked for financial closure by the United States

You can sympathize with many of these sectors being squeezed, but coin dealers, fireworks sales, dating? Operation Chokepoint was closed when it was deployed and is no longer in place. (Yeah sure!!!)

When you read about the details of chokepoint, you can see the exact same behavior along the way with crypto. The idea is to slice and dice the activity out of the mainstream economy, where it is hungry for financial access it can only wither away.

Blockchain will survive, but it’s remarkable, with crypto banned in China and pushed to death in the US, that bitcoin is still at $20,000, not below $10,000.

Here is the diagram:

I’m not a bull, but I can recognize the analysis below:

So I’m not a convinced bear.

Silvergate (SI), a bank that aims to facilitate crypto activity and a key player facilitating on-ramps in crypto, is teetering, but aside from a 5% correction, it hasn’t even tipped BTC below $20,000 .Even a bear has to admit that looking at the price action and the chart, it doesn’t look as bearish for bitcoin as you would expect.

This in itself is mysterious.

I suspect that it is the industry itself that supports the price, and that outside the parallel universe of the blockchain, the real world price of bitcoin is the price represented by the Greyscale Bitcoin Trust price, which is roughly half the price of bitcoin on a crypto exchange. Two different worlds, two different prices. Such differences have existed before in bitcoin in Zimbabwe and Korea, and there is always a good reason.

It’s not a job I want to play myself because the opponents are so fragile, but for the extremely brave it is – and we – there to get.

The crypto world is extremely different from the stock domain, so it makes perfect sense in a way that both have different values ​​for an asset that are available and not available to investors in different ways.

This may sound unlikely, but money often does counterintuitive things.

Rai stones were the currency of the Yap Islanders. They had to canoe many miles to a rocky island to extract their money. Rai stones were slabs of rock with a hole in the middle. If a returning canoe sank, the sunken stone was still considered an asset and valued.

You might guess that these Rai stones had a different value than those on land, and they certainly did to the European sailors who showed up.

They of course sailed their ships to the rocky island, loaded up and blew the Rai rocks into oblivion by trading them with the Yap Islanders for what the sailors deemed valuable.… but that’s another story.