Is Crypto in a bear market?

There has been a growth in momentum as regards cryptocurrency regulation. A number of factors have been accumulating. The Biden White House is concentrating more and more on the task of crypto regulation. Simultaneous widespread interest in Crypto makes any executive decisions important. Late January 2022, Bitcoin plunged below $37000. For perspective, we just have to remind ourselves that in November 2021, Bitcoin was at an all-time high of close to $69,000. Crypto may be entering a bear market. However, the essentials are all in place so that we may realistically expect to enter the next multiplying event following the Crypto Winter.

Crypto bear markets are part of a cycle

Bitcoin has been set to crash nearly as frequently as it booms. So in case, you deem a 25% plunge in value a crash, then Bitcoin does crash often.

However, an actual crash for a booming financial instrument is 75%. In comparison, a bubble market crash at 50% is merely mild.

At the moment, there's no obvious bull trend. Predictions are but fragile estimates. Without reservations, the bottom would be close to $12,000. Bitcoin below $20,000 is the place to start dollar-cost averaging.

There will be a next multiplying event, but it is rather far off. Right now, expect the lowest ebb of the current cycle. So hunker down for the crypto winter. Intuitively, Spring won't be too far off.

Crypto regulation resolutions Or Is Crypto entering a bear market?

In a speech courtesy of SEC Chairman Gary Gensler, we get a good idea of the commotion caused by Bitcoin's standing.

• Gensler compared the crypto sphere and its way of operating to the less than legit ways of the intelligence Services under Kissinger. Just like Kissinger did not admit to wrongdoing in the extra-legal exercises of the Services, so to the crypto sphere regularly burnishes its status as a vehicle of speculation, unapologetically.

• Gensler showed that public policy goals do not form any part at all of Bitcoin operations.

• Even then, Bitcoin has not even been used, he asserted, as a medium of exchange.

• He warned his listeners that the main objective of Bitcoin is to circumvent laws and regulations to enable money laundering, getting around sanctions, and such.

• He also agreed that the whole Bitcoin-induced scenario reminds us of the Wild West.

• Gensler pitched for Bitcoin regulation.

How long is a bear market in Crypto? Or Ethereum set to take the lead

ETH ranks as the second-largest cryptocurrency, with a market value close to $450 billion. Even though its market cap is less than half of Bitcoin's, Ethereum got a leg up on Bitcoin, posting a gain of 400% +.

The expected toppling of the Bitcoin position by Ethereum has been termed the Flippening. Were it to happen, it could stand for a major change in the cryptocurrency market. However, what's in Ethereum's favor is the fact that it is supported by application and service features.

Ethereum blockchain network offers the foundation that numerous cryptocurrencies and blockchain applications are built on top of. Ethereum's top position in the blockchain services ecosystem has aided its token post spectacular gains. The ether token is now up more than 56,700% during the last five years, outstripping Bitcoin by a wide margin in that stretch. In all likelihood, the momentum will keep going this year. Trade Ethereum CFDs with ABinvesting.

What is CBDC Crypto? Or Is CBDC a blockchain? Or CBDC will add a new dimension to Crypto regulation

China needs cryptos – China must lessen dependence on the USD, thus it must develop an alternative. It will not destroy the whole ecosystem but bring large parts of it under control. A set goal is to develop avenues for the digital yuan to sidestep USD in the international finance system.

• The People's Bank of China projects becoming the first major central bank to issue a central bank digital currency.

• While the West's PBOC counterparts have taken a more cautious approach, the Chinese entity has held trials in a number of major cities, including Shenzhen, Chengdu, Shanghai, and Hangzhou.

• The benefits of e-currency are beyond ordinary calculus.

• As an increasing volume of transactions is made using a digital currency controlled centrally, there's a marked increase in the government's ability to monitor the economy and the people.

• The CBDC rollout is also seen as part of Beijing's push to weaken the power of the US dollar.

• China holds that internationalizing the yuan can really reduce its dependence on the dollar-dominated global banking system.

• Alarms in western governments have gone off to the degree that the threat posed by the digital yuan, which could shoot China out of reach from international financial sanctions, was discussed at a high-profile G7 meeting last year.

A digital currency would permit direct transfer between global banks that could theoretically bypass the SWIFT monitoring system but still have the support of a central bank (rather than cryptocurrencies like Bitcoin that are unregulated). An alternative government-backed currency directly transferable would permit US-sanctioned countries to buy and sell with China.

The digital yuan could give those the US seeks to penalize a way to exchange money without the US is aware of the same. Exchanges would keep going without SWIFT, the messaging network used in money transfers between commercial banks and monitored by the US government.

The Chinese government is specifically interested in bypassing SWIFT.

Exporting Authoritarian "Controllable Anonymity" Or Crypto Central Bank Digital Currencies are here to stay Or What crypto regulation could mean for investors and traders

While the US, Japan, and several other countries are also focussing on digital currencies, China is aggressively going after the advantages that accompany global currency dominance.

The rest of the world's submission could mean an authoritarian model of privacy and governance being exported abroad to other countries developing their own [Central Bank Digital Currencies]. Here, the implication would be other countries taking after the "controllable anonymity" model the [People's Bank of China] is currently using for its digital RMB. In the latter case, the central authority has access to one's transaction information, while counterparties may keep their anonymity with one another.

• In a translated speech published on Hong Kong's Blockchain Society's website, China's President Xi Jinping said that China has to accelerate the development of blockchain technology and actively push its social-economic integration in PRC society.

• As per Xi, it is vital that basic research be strengthened, original innovation ability is enhanced, and China taking the leading position in the emerging field of blockchain be striven for, facilitating the occupation of the heights of innovation.

Xi's speech was given soon after Facebook broadcast its own proposed cryptocurrency, the Libra, aka the 'Diem'.

US Securities and Exchange Commissioner Hester Pierce says that such stable coins (privately issued digital currency supported by the US dollar) are a fitting reply to China's e-CNY.

Conclusion

Cryptocurrencies remain too important, too cutting edge, to go away any time soon. They may be reduced, cut to size - but even their avatars would necessarily follow basic crypto tenets. Once the problem of mining energy consumption is solved, China will push ahead with e-yuan. A significant number of obscure tokens and decentralized storage technologies with names like Filecoin, Swarm, Silicon, and Chia would be allowed to exist.

Crypto trading will remain central to the world economy. The expected executive order on the matter from the Biden White House will also focus on maintaining US dominance. Since China has taken up crypto regulation as a means to support its own stand against US economic dominance, it's reasonable to expect that Crypto will be the medium of this dialogue between the rivals.

Crypto regulation will take away the thorns that seem to concern governments, making for more efficient crypto trading. Also, the next crypto multiplying event will have Ethereum at the forefront. Therefore, traders need only be patient. The crypto bear market will not last forever. Is the Cryptocurrency market a boon or bane? Check here

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