Bitcoin Ded
Google Trends Data highlights that during the current market crash the number of queries for “dead Bitcoin” has skyrocketed to a new all-time high.
Investors suffered more than $7 billion in BTC losses having accumulated coins at higher price levels, the asset during the last crash reached the level of 17,500, an area that had not been visited for over 18 months while scoring the worst monthly performance since 2013.
These crashes are often accompanied by a series of events and dubiously valid narratives, in our case the reaction could be triggered, at first, by the change in policy of the Federal Reserve which, by raising interest rates, automatically exerts downward pressure and disinterest in riskier assets, to this must be added the implosion of the Terra-Luna system, the insolvency of Celsius and so on.
Recently the European Parliament and the European Council reached a point of agreement on the proposal for a European law 2021/0241 — “Information accompanying transfers of funds and certain crypto-assets”, born from the need to combat illegal activities, in particular money laundering, in the cryptocurrency sector
Ernest Urtasun, Spanish ecosocialist politician and member of the European Parliament, came out in these days with a new Tweet, “Deal!” (…), concerning some regulations for the transfer of crypto assets.
The tweet in its entirety explains how these new regulations are aimed at solving the non-regulation (far west) of crypto markets.
The goal will be to regulate the flows of money coming from crypto ATMs and as from any crypto asset provider, collecting information in a capillary way in order to trace the origin of each individual euro since its entry into the crypto system.
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(Fun Fact) The verification of the identity of the beneficial owner of the unhosted wallet will be mandatory for transfers of an amount exceeding € 1000 (obviously all in compliance with the GDPR regulations)
Obviously an open hunt will be open for unregulated CASP that will be reported in a public register and isolated from any type of relationship with those in accordance with the law.
All this seems to directly undermine the concept of decentralization by transforming these new markets in the image and likeness of the traditional ones, which, as we know, match each transfer of goods with information relating to origin and recipients.
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So what, is crypto dead? No, we don’t think so, certainly these new regulations, (still being approved) will change our way of dealing with DeFi and will frighten the most sensitive investors and will undoubtedly be accompanied by many apocalyptic narratives.
If we go to analyze our favorite asset’s past in fact we notice that in its 12 years of life Bitcoin has been given for dead on several occasions (459 to be precise), in articles and content with large audiences that define it as useless, worthless or precisely, dead.
Let’s quote the legendary Peter Schiff (Top BTC hater) for example:
Despite all this, Bitcoin and the cryptocurrency market have always managed to dispel myths, deny haters, rekt short sellers and return to the field stronger than before to compete with traditional finance, whether it took weeks, months or years….
In fact, although many new players have been frightened in these phases it seems that other more experienced haven’t stopped accumulating.
Whales (>1k BTC) are continuing to increase their positions aggressively, acquiring 140k BTC/month directly from exchanges, giving us among other things a signal of market accumulation zone
But retail investors ain’t joking as well, the addresses that contain a minimum of 1 BTC are constantly increasing bringing the total number of “Wholecoiners” to 865,254!
Long story short… one of the best investors ever once said:
“Be fearful when others are greedy and be greedy when others are fearful!”
