Bitcoin and Digital Currencies are on the Brink of a Correction…Collapse! (Opinion-updated)
**Disclaimer: This is not financial advice but a perspective.**
We may be on the brink of a significant correction in Bitcoin, similar to the housing crash or the dot-com bust. As of November 14, 2024, Bitcoin has reached an all-time high of $93,445, which has raised concerns about an impending market correction. There are three critical reasons for this anticipation:
- **Lack of Substantial Regulation from the SEC or Legislative/Congressional Oversight**
. Despite years of market growth, no comprehensive legislation has yet been enacted explicitly targeting Bitcoin’s governance. The focus of regulatory discussions has primarily been on stablecoins, leaving broader cryptocurrencies in a gray area. The SEC and CFTC still cannot define Bitcoin, cryptocurrencies, or altcoins clearly as securities or commodities. This lack of a concrete definition creates a regulatory vacuum, leaving the market vulnerable. Right now, trading cryptocurrencies is like driving on streets without traffic signals and signs. It’s the Wild West of asset classes, with no cohesive governance to rein in speculative excesses.
2. **The Influx of Big Institutions Without Thorough Scrutiny**
